Cebu-based developer AppleOne Group sees ‘positive’ hospitality outlook amid Middle East conflict

Cebu-based property developer AppleOne Group Inc. on Wednesday said the outlook for the hospitality industry in the province remains ‘positive’ in the coming months, despite the ongoing conflict in the Middle East.

Leif P. Bajarias, executive president for finance and operations at AppleOne Group Inc., said one key driver is the resilient passenger traffic at Mactan-Cebu International Airport (MCIA), the province’s primary gateway.

In January, the airport recorded an all-time high of 1.3 million passengers, up 15% from January 2025, according to the Mactan-Cebu International Airport Authority website.

The same month also marked the celebration of the province’s biggest annual festival, Sinulog, which draws millions of tourists and helps boost the local local economy.

Passenger traffic declined by 15% in February, with nearly 800,000 total passengers. The MCIAA has yet to release the figures for March.

Mr. Bajarias said that, like many other sectors, the hospitality industry is also feeling the ripple effects of the conflict in the Middle East, but maintained that the outlook remains positive.

“We’re very positive. And if you refer to the current ordeal, of course everybody is affected. The hospitality sector is affected because we also rely on International guests,” he said during the Mahi Center launch press conference.

He also said that the pandemic was more uncertain than the current situation, adding that resilience remains the key response for now.

As for Fairfield by Marriott Cebu Mactan, one of the anchor components of Mahi Center, a mixed-use development by AppleOne Group, both were officially launched on Wednesday.

The nine-story hotel has been posting steady occupancy levels since its soft launch in December, Dottie V. Wьrgler, multi-property general manager of Sheraton Cebu Mactan Resort and Fairfield by Marriott Cebu Mactan said.

“It has been steady, at least from the time that we opened in December through the first full quarter of 2026. Steady in the sense that we didn’t see a dip,” Ms. Wьrgler said during the press conference.

“So, the base could be less, but we were already in double digits in terms of occupancy. And it has, on average, actually been maintained,” she added.

In March, when the effects of the conflict started to be largely felt, Ms. Wьrgler said the hotel did not see a dramatic drop in occupancy, driven by various partnered businesses in Manila.

Since March, the country has been experiencing series of fuel price hikes, among the highest in Asia, which have added burden on business operating costs and pushed airline fuel expenses higher, resulting in increased ticket prices.

Moving forward, Mr. Bajarias said AppleOne Group’s portfolio of properties, retail centers, and hotel partnerships strengthens its resilience by ensuring developments remain accessible to a broad base of users.

“We don’t want to measure volume per visit, but we want frequent, routine visits. If that means putting in place daily-use categories, we will have to do that so that the property is integrated into the lives of employees and residents within Lapu-Lapu City,” he said. — Edg Adrian A. Eva