The Ultimate Guide to Starting a Hotel or Resort Business in the Philippines & Southeast Asia
Three Key Takeaways for Hotel and Resort Owners
Early sourcing decisions affect long-term operating costs more than décor or branding.
Guest experience is shaped by basics like linens, toiletries, and cleanliness, not luxury add-ons.
Working with reliable regional suppliers reduces risk, delays, and budget overruns.
The Ultimate Guide to Starting a Hotel or Resort Business in the Philippines & Southeast Asia
Why the Philippines and Southeast Asia continue to attract hotel investors
The Philippines and Southeast Asia remain attractive markets for new hotels, resorts, and serviced accommodations because of steady tourism growth, strong domestic travel, and increasing demand for mid-scale and boutique properties.
According to the Philippine Department of Tourism, international arrivals have continued to recover alongside strong local travel, especially in destinations such as Palawan, Cebu, Siargao, Boracay, Tagaytay, and Metro Manila. You can review official tourism data here:
https://beta.tourism.gov.ph/tourism-statistics/
For operators, this creates opportunity, but also competition. Guests today expect clean rooms, comfortable beds, consistent amenities, and reliable service regardless of property size. The properties that perform best are usually the ones that plan operations early and control costs without sacrificing quality.
Understanding startup costs for hotels and resorts
For small to mid-sized hotels and resorts in the Philippines and Southeast Asia, startup costs usually fall into a few major categories:
Property development or renovation
Furniture, fixtures, and equipment
Operating supplies and consumables
Staffing and pre-opening expenses
Licensing, permits, and accreditation
One common mistake new owners make is underestimating the recurring cost of consumables such as linens, towels, toiletries, and housekeeping supplies. These items are replaced, washed, and replenished constantly, which means quality and sourcing strategy directly impact monthly expenses.
Owners who plan these purchases early often avoid last-minute imports, inconsistent quality, and inflated costs.
Step 1: Define your target guest and location
Before sourcing furniture or supplies, define who your guests are and where your property sits in the market.
Beach and island resorts often prioritize relaxed comfort, durability, and easy-to-clean materials. City hotels and business accommodations focus more on consistency, fast turnover, and standardized room setups. Event-driven properties need banquet chairs, table linens, and storage solutions that can handle frequent use.
Free tools like Google Trends can help identify travel interest by location and season:
https://trends.google.com/
Clear positioning helps you avoid overspending on items that do not support your actual guest experience.
Step 2: Registration and accreditation essentials
Hotels and resorts operating in the Philippines typically require registration with the DTI or SEC, BIR registration, local permits, and Department of Tourism accreditation.
DOT accreditation increases credibility and improves visibility on booking platforms. Official guidelines can be found here:
https://beta.tourism.gov.ph/dot-accreditation/
These requirements also influence product specifications, especially for safety, hygiene, and room standards.
Step 3: Invest early in core guest essentials
Guests rarely remember the exact size of a room, but they remember how the bed felt, how clean the bathroom was, and whether essentials were available when needed.
Core products to prioritize early include:
Bed sheets, pillowcases, duvets, and mattress protectors
Towels, bath mats, and pool towels
Toiletries such as soap, shampoo, and slippers
Housekeeping and cleaning supplies
Storage carts, racks, and operational tools
At Allora by Décor, most hospitality clients focus first on these items because they influence reviews, laundry cycles, and operational efficiency.
You can explore commonly sourced categories here:
https://www.alloralinen.com/bedandbathlinens
https://www.alloralinen.com/hotelsupplies
Bulk sourcing from a reliable supplier often reduces unit cost and ensures consistency across rooms.
Step 4: Build systems before opening
Operational systems are what keep costs predictable after opening.
Laundry management, inventory tracking, and cleaning protocols should be set before your first guest arrives. Even simple tools like shared spreadsheets or basic property management systems help prevent over-ordering and shortages.
Efficient systems also reduce staff training time and improve consistency, which directly affects guest satisfaction.
Step 5: Control costs without lowering standards
Cost control does not mean choosing the cheapest option available. It means choosing products that last longer, wash better, and reduce replacement frequency.
Common cost-saving strategies used by hotel operators include:
Buying linens and toiletries in bulk
Working with regional suppliers instead of importing small quantities
Choosing quick-dry towels and durable fabrics
Standardizing room setups to simplify inventory
Many small hotels across Luzon and Visayas reduce long-term costs by sourcing hospitality essentials locally through suppliers like Allora by Décor rather than relying on fragmented sourcing.
Step 6: Marketing that supports operations
Marketing in the early stages should focus on credibility and clarity rather than heavy promotions.
Platforms such as Google Business Profile, Agoda, and Booking.com help establish trust. Social media works best when it shows real operations such as room setups, laundry processes, and staff preparation.
For broader industry context, this hospitality market overview from Statista provides useful insights:
https://www.statista.com/topics/6526/hotel-industry-in-southeast-asia/
Step 7: Guest experience is built on consistency
Exceptional guest experience comes from doing the basics well every day.
Clean rooms, fresh linens, properly stocked bathrooms, and reliable housekeeping create comfort guests notice immediately. Small touches like consistent toiletries, well-maintained towels, and clean common areas often lead to better reviews and repeat bookings.
Many hotels now also shift to refillable dispensers and bulk amenities to improve sustainability while reducing costs.
Step 8: Plan for sustainability and scale
Sustainability is no longer optional for many travelers. It also makes operational sense.
Common approaches include:
Refillable soap and shampoo dispensers
Energy-efficient laundry processes
Durable linens that withstand frequent washing
Reduced packaging through bulk purchasing
As properties scale, having a supplier that can support larger volumes and consistent specifications becomes increasingly important.
Common mistakes new hotel owners should avoid
Underestimating ongoing laundry and replacement costs
Buying low-quality linens that wear out quickly
Sourcing from too many vendors without standardization
Delaying operational planning until after opening
These issues often cost more to fix later than addressing them early.
Working with the right suppliers from day one
Starting a hotel or resort is not just about rooms and design. It is about creating reliable systems that support guest comfort and operational efficiency.
Allora by Décor works with hotels, resorts, and project developers across the Philippines and Southeast Asia, supplying hotel supplies, toiletries, and linens that support long-term operations and scalable growth.
To explore commonly sourced categories, visit:
https://www.alloralinen.com/hotelsupplies
https://www.alloralinen.com/bedandbathlinens
For more insights, you may also find these resources helpful:
https://www.alloralinen.com/blog
