zzap

I'm heading to Manila next week and just checking the prices of accommodation there. Chain hotels are asking an arm and a leg for accommodation, especially for the Philippines.

e.g. 22 - 24 October 2014 in cheapest available room pre tax:
Sofitel Philippine Plaza (luxury room): PHP 21,317.30 ~ US$475
Marriott Manila (exec level): PHP 15,000.00 ~ US$334
Shangri-La Makati (club room): PHP 17,500.00 ~ US$320

Hotels prices in relation to other costs seem to be a larger outlier than usually seen in in third-world Asia. Prices at these kinds of hotels also seem higher than what they were a year or so ago, based on reading older posts here on FlyerTalk.

Anyone know what's happening here? Doesn't seem like any conferences etc. are driving up the prices. Why are these chains charging so much for accommodation in Manila?

janbrubel

It is true that prices are going up. Been a regular Manila visitor for the past 6 years, a few years ago prices for luxury hotels were very reasonable and often a bargain compared to similar hotels in other big cities, nowadays prices are catching up with the international average fast.

Don't know what is causing this. It is of course supply and demand but as to why the demand for luxury rooms in Manila has increased, I have no idea. Manila isn't a big conference city and in my experience, even during conferences, hotels in Makati hardly increase their prices. Maybe the fact that Manila is gaining popularity as tourist destination explains a little but that can't be the only thing.

gracall

From what I've gathered, most traveling into Manila or staying in Makati are business folks on company budget (read US budget), especially from the call center industry. Hotels are well aware of this and are taking maximum advantage.

Most of these hotels are very outdated in terms of facility. Judging from your list, I would recommend the Manila Pen. If budget is a concern, MO usually have lower rates.

whughes3

Unfortunately the MO has closed recently.

zzap

Budget isn't really a concern, I was just surprised when looking at the rates and couldn't work out an explanation for them.

No SPG hotels in the whole of Philippines and MO, my usual backup, has closed down. Sad state of affairs.

gracall

My apologies. I've been staying at BGC F1 for a while and was not aware MO was closed already. While not 5-star, F1 is an acceptable (and the only available) alternative closer to work for me.

zzap

I ended up going with two nights at New World and a night at the Sofitel. It also seems that you can get a significant discount at a lot of these hotels if you can get a "local rate" (i.e. if you have a Filipino friend, get them to call up and organise the room).

Felix Felicis

Simple supply and demand -- even the three star hotels are always full, nowadays. And the Marriott is expanding. But there are many boutique hotels (not part of any chain), i.e., The Picasso, that are quite decent. Check tripadvisor for ratings and reviews.

New hotels are opening within the next few years, including SPG.
Grand Hyatt BGC area -- 2015
Shangri-la The Fort (BGC) -- 2015
Westin Manila Bayshore -- 2016
Sheraton Manila -- 2017

zzap

Why is there so much demand, in your opinion? Or is it the lack of supply? With SPG not having invested in Manila earlier, and the MO closing down, I would have thought the demand was mediocre. But the room prices tell a different story.

Felix Felicis

From the news, there are more investors, businessmen, tourists, etc. (All indicators are up, they claim.)
I am in the education sector and anecdotally, we have had many visitors the past few months, from the U.S., Canada, Australia and Japan. I'd say we used to get one or two visits per year, three years ago. This year, we've had around eight visits, through September. We've also had to book, just last month, professors/visiting students (MBA level), around 20 pax total, for a two week stay. They selected a combination of Joya Towers (serviced apartments), St. Giles hotel, and New World hotel. So it adds up...

tentseller

Lack of supply and supply is inelastic. It takes 18 months to develop a new hotel property from concept to opening. In Phillipines it would take at least three times as long.

Besides the call centres other businesses are booming as well in Makati due to the relative low cost of doing certain business in the region.

zzap

So I ended up staying at the New World Makati in one of their "newly renovated" rooms, and I had a pretty bad experience.

These were the highlights:

• Room air-conditioning was horrific, to the point where it essentially didn't work at all. The humidity in the room was off the charts, and it made the entire stay rather unpleasant as everything was sticky, breathing became laborious, and it took six hours for my hair to dry after a shower. I don't really know what was going on (surely they weren't using an evaporative air conditioner in Manila's climate?) but the air in the entire floor was very thick. I also checked out another floor to make sure it wasn't just an issue with my level, and it appeared to be consistent throughout all the room levels. Air conditioning in lobby and club lounge were fine.
• Residence Club lounge was pretty disappointing. Its appearance was clean and fresh, but it went over the line into sterile and cold. There was no food except for biscuits outside of breakfast and evening cocktails.
• Residence Club lounge had no table service except for breakfast. All alcoholic beverages were "help yourself" in the evening.
• Residence Club lounge food selection was poor across the board -- not many options at breakfast nor in the evening. I ended up having breakfast in the lobby cafe downstairs which was far superior -- I recommend this over going to the lounge.
• Ordered banana pancakes for breakfast in the lounge and it arrived as berry pancakes. No query as to whether this is ok or whether I can eat berries.
• That said, service was this hotel's most redeeming quality. Staff were generally pleasant and helpful ... mostly. I contracted wet season flu while I was there and requested a box of tissues at the cafe over breakfast from what appeared to the cafe staff manager named Joan. Tissues never arrived.
• Noticed I got charged a daily fee for "premium" wifi at PHP 750 (~ USD 17) per day, even though premium wireless connectivity is meant to be inclusive of Residence Club benefits (the authentication portal when connecting to the wifi even says that the premium option is ~free~ for club users.
• There were additional "room - service charges" on the bill on top of the quoted room rate that were around PHP 1220 (~ USD 27) per day.
• Emailed the hotel a few days before arrival requesting restaurant recommendations in the area because it would be an anniversary, and I found a "Happy Anniversary!" chocolate mud cake left in my room a few hours after arrival.

While the staff were friendly and polite, and the hotel was impeccably clean, the service offering was poor and the value-for-money was atrocious. I would not stay at the New World Makati the next time I am in Manila.

deniah

Wow. I just did a walk-up to the Hyatt Regency for 7000 PHP base rate, 8600 PHP all-in.

Got a 11th floor city view - not sure if completely standard or I got something for Platinum membership but the room is and hotel is fantastic.

Hotel is smack middle of hooker central for better or worse.

RustyC

Lodgings are one area where you generally pay more and get less vs. wealthier countries like Malaysia or Thailand, where supply/demand is in your favor AND the hotels are probably better kept up as well.

I've had good luck with the Executive Plaza in Malate at $50-ish, though there you get to deal with the beggars, exchange touts, belt sellers, watch/coin sellers, Viagra sellers, food-carrying bump-into-you grifters, "Remember me from the hotel?" con guys (and let me know if I'm leaving any out) as soon as you walk out the door. Generally harmless and not hard to shake (it isn't India, thankfully), but that's why so many go to the much more sanitized Makati, which looks more like a U.S. edge city and has places like Greenbelt where you can even eat at U.S. franchise places like Chili's.

So a tight supply situation citywide is even tighter if you limit to Makati, as many probably do. OTOH, traffic is arguably worse than Bangkok and the rails are packed like sardines, so MNL is definitely a place where you don't want to stay too far away from business.

zzap

Yep, in Makati it seems like you're definitely paying for the location and the 'security' of the more glamorous area rather than the increased quality of the hotel.