The Ultimate Guide to Starting a Hotel or Resort Business in the Philippines & Southeast Asia
Why the Philippines and Southeast Asia Are Ideal for Hotel Investments
Southeast Asia is booming — and the Philippines is leading the way. With millions of local and international travellers returning post-pandemic, demand for comfortable, affordable, and Instagram-worthy stays has skyrocketed.
From the beaches of Palawan to the mountain resorts of Tagaytay, opportunities for small to medium-scale hospitality businesses are everywhere. The Department of Tourism reported over 5.4 million international visitors in 2024, and the numbers continue to climb (source).
In short, there’s never been a better time to invest in your dream property — but smart planning and cost control are everything.
The Ultimate Guide to Starting a Hotel or Resort Business in the Philippines & Southeast Asia
Understanding Startup Costs for a Hotel or Resort
Before diving in, it’s crucial to know what you’re up against financially. Below is a general startup cost breakdown for small to medium-sized hotels or resorts in the Philippines (20–40 rooms).
Category Estimated Cost (PHP) Notes
Estimated hotel and resort cost for Philippines and Southeast Asia
💡 Pro Tip: One of our clients in Bohol started with a modest 18-room beachfront resort and saved nearly 20% of startup costs by ordering bulk linens and amenities directly from local suppliers like Allora — avoiding costly import markups.
Step 1 – Research Your Target Market and Location
Choosing your location is everything. Beachfront resorts attract international travellers, while city hotels cater to business guests and staycationers.
For example, small boutique resorts in Siargao and El Nido tend to perform better with eco-conscious amenities and minimalist designs. Meanwhile, Manila or Cebu hotels should focus on comfort, cleanliness, and accessibility for business travellers.
Use tools like Google Trends and the Philippines Tourism Satellite Account (source) to understand demand patterns and traveller profiles.
Step 2 – Get Legal and Licensed
Register your business with:
Department of Trade and Industry (DTI) or SEC (for corporations)
BIR for tax purposes
Local Mayor’s Permit
DOT Accreditation (mandatory for operating hotels/resorts)
Getting accredited by the Department of Tourism boosts your credibility and visibility on travel platforms like Booking.com and Agoda.
Step 3 – Invest in High-Quality Linens and Supplies
Guests might forget your room size — but they’ll never forget how your bed and towels felt. Linens are a core part of guest satisfaction and online reviews.
Stock up on essentials:
Bed Sheets & Pillowcases: Opt for durable, soft, and easy-to-launder fabrics.
Towels & Bath Mats: Choose fast-drying options to save on laundry costs.
Comforters & Duvets: Perfect for cooler destinations like Tagaytay or Baguio.
Tablecloths & Napkins: Great for resort dining or in-house restaurants.
🛏️ Explore Allora’s Bed & Bath Linens Collection — trusted by boutique hotels and resorts across Luzon and Visayas for bulk orders.
📦 For full hotel setups, browse our Hotel Supplies Page for amenities, carts, racks, and cleaning tools ideal for new operations.
HStep 4 – Create Your Operational Systems
Efficient hotel operations separate great stays from average ones. Focus on:
1. Staff Training – Train housekeeping, front desk, and maintenance teams for consistency. A well-trained staff means fewer guest complaints.
2. Laundry Management – Invest in energy-efficient washers and dryers.
3. Cleaning Protocols – Proper hygiene can make or break your online reputation. Check out: Why Every Hotel in the Philippines Needs Luggage Trolleys (and How They Save You Money)
4. Inventory Systems – Keep digital records of linens, amenities, and restocks. Simple tools like Google Sheets or Hotelogix can help.
Step 5 – Managing Costs Without Cutting Corners
Startup budgets often get tight, but cutting quality isn’t worth it. Instead, find strategic ways to save:
✅ Buy in Bulk: Ordering linens, amenities, and cleaning supplies wholesale saves 20–40%.
✅ Work with Local Suppliers: Importing can triple costs due to tariffs and shipping.
✅ Outsource Laundry or Maintenance: For small hotels, outsourcing can save on equipment and labour costs.
✅ Energy-Efficient Appliances: LED lighting, inverter ACs, and smart thermostats pay off long-term.
One of our hotel partners in Subic cut down monthly expenses by 30% after replacing all incandescent lights with LED fixtures and using quick-dry linens from Allora that reduced laundry turnaround by half.
Step 6 – Market and Position Your Property
A great property won’t thrive if no one knows it exists. Build awareness through:
Google My Business for local visibility
TripAdvisor and Agoda listings for credibility
Facebook & Instagram for storytelling and visuals
Use organic content and storytelling — showcase your décor, linens, and hospitality experience. Hotels that post behind-the-scenes “laundry days” or “staff stories” tend to get more engagement and authenticity-driven bookings.
If you want inspiration, check our blog “Budget-Friendly Linen Solutions for Small Hotels”. It’s packed with cost-saving ideas without compromising guest experience.
Step 7 – Focus on Guest Experience
From the scent of freshly laundered sheets to the softness of towels — these details turn one-time guests into repeat customers.
Filipino hospitality is world-famous, but operational consistency is the real secret. Offer guests a blend of comfort and value:
Welcome drinks or cool towels upon arrival.
Complimentary pool towels.
Locally inspired décor and scents.
Pro Tip: Many resorts in Boracay use scent diffusers in their lobby to create a signature “memory scent.” You can easily replicate this using affordable aroma diffusers available through your local suppliers.
Step 8 – Manage Finances and Sustainability
Keeping profits steady means balancing operations with sustainability. Guests now expect eco-friendly practices — and they often reduce costs too:
Use refillable dispensers for shampoo and soap.
Install solar panels for common areas.
Switch to microfibre towels to cut drying time by half.
Compost organic waste if your resort has a kitchen.
For reference, a small eco-resort in Siargao reported cutting monthly operating expenses by 25% by adopting eco-laundry practices and bulk purchasing biodegradable cleaning products.
Common Mistakes New Hotel Owners Make
Avoid these early pitfalls:
Underestimating operational costs and laundry needs.
Buying low-quality linens that wear out fast.
Not training staff in guest service etiquette.
Skipping marketing and depending only on walk-ins.
Remember, guest comfort = long-term ROI. The bed they sleep on, the towel they dry off with, and the cleanliness of the room all affect reviews — and revenue.
Ready to Start Your Hotel or Resort Journey?
Starting a hotel or resort in the Philippines or Southeast Asia isn’t easy — but it’s absolutely rewarding. The secret is a mix of smart planning, efficient operations, and strategic sourcing.
If you’re just getting started, explore Allora’s trusted collections:
🛏️ Bed & Bath Linens for bulk linens and towels.
🧴 Hotel Supplies for cleaning products, racks, trolleys, and amenities.
And for more practical reads:
Conclusion
Starting a hotel or resort is about creating experiences, not just rooms. Whether you’re building a beachfront escape or a city boutique stay, every pillow, towel, and piece of décor contributes to your guest’s story.
With smart sourcing, efficient systems, and a strong local network, your hospitality dream can thrive — not just in the Philippines, but anywhere in Southeast Asia.
So, when you’re ready to make that dream a reality — make sure your guests sleep soundly, wrapped in comfort that feels like home. Learn more about Allora and contact us today for your hotel & resort needs!
