22/05/2026
Megaworld Corporation recently announced the launch of 6 new hotels that include condotel products. With other developers launching projects with a similar structure, it seems private capital is being eyed to grow the hospitality sector.
In a condotel, you aren’t just buying real estate; you are buying a commercial hospitality business wrapped in a property vehicle.
If you want to evaluate these projects, you need to stress-test the deal using 4 simple pillars:
The Revenue Model – Aim for a "Gross Revenue" pool. Earning a percentage of top-line room sales shields you from rising operational costs and inflation. On the other hand, "Net Income" models expose your profits to hotel cost overruns and operational inefficiencies.
The Operator – A great building with a weak hotel operator will bleed cash. Look for a brand with a strong, global reservation network.
Yield Realism – Ignore the optimistic 12% yield in the brochure. Do the math at a conservative 60% occupancy.
Infrastructure Catalysts – True capital growth depends on accessibility. Is the project near a modernized regional airport or an expanding expressway? High-spending international travelers prefer destinations with direct global links over hard-to-reach spots.
Don’t just buy the beach view; buy the business ecosystem behind it.
With expanding regional infrastructure and improving global connectivity, the Philippine hospitality sector is on the verge of a major breakthrough. To sustain this trajectory, public-private synergy is key—where the government paves the way through strategic infrastructure and the private sector drives disciplined commercial ex*****on.
PROPERTY developer Megaworld Corp. said it plans to open six new hotels across key destinations in the Philippines within the next three years as part of its hospitality expansion program. “Our goal is to have more than 20 hotels and about 9,000 hotel rooms when we reach our 40th year within the n...
