SM PRIME Holdings, Inc. said its hotels and convention centers unit is investing nearly P15 billion to support a five-year expansion plan that will broaden its offerings.
SM Prime’s SM Hotels and Convention Corp. (SMHCC) aims to develop eight new hotels and two convention centers across the country within the five-year period.
The expansion will add over 1,500 guestrooms to SMHCC’s portfolio, SM Prime said in a regulatory filing on Wednesday.
Alongside its expansion efforts, SMHCC is building new function rooms, adding food and beverage outlets, and renovating rooms at Taal Vista Hotel, Pico Sands Hotel, and Park Inn by Radisson Davao to enhance its offerings.
For 2024, SM Hotels reported a 67% occupancy rate, up by two percentage points from the previous year, driven by strong demand for travel and meetings, incentives, conferences, and exhibitions (MICE).
Its properties in the National Capital Region averaged a 71% occupancy rate, exceeding the 61% industry average at year-end.
“The rise in hotel stays and event bookings signals a vibrant rebound for the hospitality and MICE sectors,” SMHCC Executive Vice-President Peggy E. Angeles said.
SMX Convention Centers also recorded a 15% increase in hosted events, welcoming 6.3 million visitors in 2024. The company’s halls and function rooms hosted major trade shows, corporate events, and industry exhibi-tions.
“Many of these events have returned to or surpassed pre-pandemic levels, reflecting strong recovery and sustained market interest,” SM Prime said.
SMHCC’s portfolio includes ten hotels, spanning luxury (Conrad and Radisson Blu), leisure (Taal Vista, Pico Sands), and business (Park Inn and Lanson Place) brands, as well as eight convention centers and trade halls under the SMX brand.
For 2024, SM Prime’s consolidated net income rose by 14% to a record-high P45.6 billion, as consolidated revenue grew by 10% to an all-time high of P140.4 billion.
Beyond hotels and convention centers, SM Prime’s portfolio also includes malls, residences, and offices.
SM Prime shares rose by 3.51% or 80 centavos to P23.60 apiece on Wednesday. — Revin Mikhael D. Ochave
