Thinking of Starting a Hotel in the Philippines? Here’s What No One Tells You!
The Philippines — with its mix of world-class beaches, urban nightlife, and warm hospitality — continues to attract travellers and investors alike. From the busy streets of Metro Manila to the serene beaches of Boracay, Cebu, Bohol, and Coron, many entrepreneurs are now asking: “How do I start my own hotel or resort here?”
But here’s the truth — opening a hotel isn’t just about having a dream location. It’s about planning, budgeting, and choosing the right suppliers who understand the local and international hospitality scene.
Whether you’re setting up a 10-room boutique resort in Davao or a full-scale hotel in Quezon City, this guide walks you through what most people don’t tell you about startup costs, essential hotel supplies, and day-to-day operations.
Thinking of Starting a Hotel in the Philippines? Here’s What No One Tells You!
1. Understanding the Real Startup Costs
Before diving into décor or amenities, it’s vital to map out your financial plan. Many first-time hotel owners underestimate their startup costs — especially in the Philippines, where logistics and import fees can surprise even experienced investors.
Initial Setup Costs
Here’s a rough breakdown of what you might expect:
Land or lease: Prices vary drastically — from PHP 100,000–300,000/month for urban locations like Metro Manila to more affordable options in provincial areas.
Construction and renovation: Around PHP 25,000–40,000 per square metre, depending on finish.
Permits and licenses: Expect to spend PHP 100,000–250,000 for paperwork, including local business permits, environmental clearance, and Department of Tourism (DOT) accreditation.
Furnishings and equipment: Beds, linens, lighting, furniture, and fixtures — easily another PHP 500,000–1,000,000+ for small hotels.
For reference, a boutique 15-room property in Cebu shared that their total launch cost reached roughly PHP 15 million — a figure that excludes land ownership.
“We thought the hardest part was construction, but really it was getting everything from suppliers on time and within budget,” said The Bayfront Stay Cebu — one of Allora’s local clients who sourced linens and towels from us during their soft opening.
2. The Hotel Supplier Checklist You’ll Actually Use
Once your building is up, it’s time to focus on what guests will actually notice — the comfort, cleanliness, and visual appeal.
Essential Bed & Bath Supplies
Your guests’ first impression starts in the room. Prioritize quality over quantity, even if you’re working with a tight budget.
Bed linens, pillows, and duvets — Soft, durable, and hotel-grade materials make a lasting impact. Explore Bed & Bath Linens for premium options suited to all budgets.
Towels and robes — Don’t skimp here. The softness and absorbency matter more than you think.
Mattress protectors and pillow covers — Extend the life of your investment and maintain hygiene.
Room and Lobby Essentials
Luggage trolleys and hangers — Create an instant upscale impression.
Lighting and décor pieces — Functional lighting from local sources in Quezon City can help you cut costs without sacrificing ambience.
Waste bins and cleaning carts — A small detail, but one that affects your guests’ perception of cleanliness.
For more detailed supply guidance, check out our blog: First Impressions Matter: 10 Lobby Essentials Every Guest Notices Instantly
and Budget-Friendly Linen & Hotel Supply Solutions for Small Hotels in the Philippines.
3. Permits, Licenses, and Legal Requirements
Before operations, you’ll need to secure several legal documents. Skipping these will delay your opening — and potentially cost you fines.
Main Requirements:
Barangay Clearance and Business Permit from your local LGU
Fire Safety Inspection Certificate
Sanitary Permit
DOT Accreditation for hotels and resorts
The Department of Tourism (DOT) outlines accreditation steps for all hotel categories in the Philippines. You can view details on their official site: Department of Tourism Accreditation.
For general startup compliance, visit Business.gov.ph — the Philippine government’s centralized resource for new businesses.
4. Choosing the Right Hotel Location
Choosing between Manila, Cebu, Davao, Boracay, or Bohol depends on your target market and business model.
Metro Manila:
Ideal for business travellers and short stays. Hotels near Quezon City and Makati enjoy year-round occupancy from corporate clients.
Cebu and Davao:
Perfect for business-meets-leisure travellers. Cebu is known for its accessibility to beaches and growing tourism economy, while Davao offers stability and safety.
Boracay, Coron, and Bohol:
These areas attract international tourists, so investing in resort-quality amenities pays off. For example, our partner Blue Haven Resort Boracay found that upgrading their linens and guest slippers boosted their repeat guest rate by 18%.
Mindanao:
Emerging tourist hubs like Siargao and Samal Island are becoming attractive for eco-resort projects.
5. Managing Operations Smoothly
Your operations define your guest experience. This includes not only the staff but also how you manage your supplies, maintenance, and turnover.
Inventory and Supply Management
Partner with reliable local suppliers to avoid restock delays. For instance, clients in Metro Manila and Cebu often prefer suppliers who can deliver bulk Hotel Supplies on short notice — a service we’ve refined for both boutique and chain clients.
Keep a quarterly restock plan and monitor linen and towel lifespans. A good rule: replace high-use items every 6–8 months.
Staff Training
Filipino hospitality is already world-renowned, but ongoing training ensures consistency. Conduct monthly refreshers for housekeeping and front desk teams. Encourage upselling — even a simple room upgrade can add 10–15% to revenue.
6. Budgeting Tips That Save You Millions
One of the biggest mistakes new hoteliers make? Overspending on design and underspending on operations. The key is balance.
Here’s how to stretch your peso wisely:
Source locally when possible — Lighting and furniture makers in Pampanga and Bulacan offer high-quality craftsmanship at half the price of imports.
Buy in bulk — Not just for savings, but for consistency in design and quality.
Work with a trusted supplier network — Allora Linen, for example, supports hotels nationwide with consistent delivery and custom branding for linens and amenities.
“Switching to a local supplier saved us almost PHP 80,000 monthly,” said the manager of Coastal Dream Inn Bohol. “We got the same five-star quality but without the import headaches.”
7. Marketing Your Hotel Before Opening Day
Your brand story matters — especially in an industry built on emotion and experience. Even before your hotel is fully operational, start building anticipation online.
Marketing Checklist:
Create a Google Business Profile for your property
Post updates and progress photos on Facebook, Instagram, and TikTok
Partner with travel influencers or vloggers for pre-launch buzz
Offer “soft opening” promos to generate early reviews
If you’re aiming to attract global travellers, ensure your hotel is listed on Booking.com, Agoda, and Expedia, with high-resolution photos and keyword-optimized descriptions.
8. Global Trends and Local Adaptation
While sustainability and technology drive global hotel trends, your approach should fit local culture and traveller expectations.
Sustainability
Use eco-friendly amenities, biodegradable packaging, and energy-saving systems.
Smart Solutions
Contactless check-ins, digital concierge systems, and QR-based menus are now standard across Southeast Asia.
Local Culture
Integrate Filipino artistry — from local furniture to woven décor pieces — to create a memorable, authentic atmosphere.
9. Common Mistakes to Avoid
Even the best concepts can fail due to avoidable errors:
Skipping feasibility studies
Relying too much on imported suppliers
Ignoring online reviews or social media feedback
Forgetting about after-sales support from suppliers
Remember: a stunning lobby means little if you can’t deliver reliable service and comfort behind the scenes.
Conclusion: Building a Profitable, Guest-Loved Hotel
Starting a hotel in the Philippines is one of the most rewarding ventures — but only if you prepare smartly. Whether your property rises in Metro Manila or the beaches of Boracay, the key is understanding your startup costs, partnering with reliable local suppliers, and running efficient daily operations.
The tourism industry across Southeast Asia is booming — and your hotel could be next on travellers’ must-visit list.
Explore Allora’s trusted collections today to kickstart your journey:
Because in hospitality, comfort and quality never go out of style.
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