Despite a challenging landscape marked by a lackluster hotel sector and global economic uncertainties, Chroma Hospitality Group, the management arm of the Gotianun-led Filinvest Development Corp. (FDC), is charting a promising trajectory with a projected 12 percent growth this year. Alan James Montenegro, the company’s country manager, shared this optimistic outlook even as many in the industry grapple with slowdowns, partly attributed to the election season and broader market anxieties. Chroma oversees prominent hotel brands such as Crimson Hotel and Resorts, Quest Hotels, Grafik Hotels and Resorts, and Timberland Highland Resort. Montenegro noted that while the company’s revenue is slightly below budget, it remains comfortably above the 10 percent growth threshold—a beacon of hope in an otherwise subdued market.
This resilience is not just in topline revenue but also in profitability. Montenegro expressed confidence in a double-digit growth in earnings for 2025, fueled by strategic cost management and operational discipline. The company has tightened expense controls, which in turn has bolstered its first-quarter performance, largely driven by strong domestic business. Montenegro also highlighted a nuanced dynamic in tourist arrivals and hotel occupancy: both statistics remain relatively flat, yet the company’s average daily rate (ADR) has experienced an impressive uplift of 10 to 15 percent. This price increase is being accepted by customers, a testament to the high quality of service and enhanced customer value proposition that Chroma brands have cultivated over the years.
To understand how this growth aligns with broader tourism trends, it’s crucial to look at the data released by the Department of Tourism. In 2024 alone, the Philippines welcomed nearly 6 million foreign travelers, with over 91 percent being foreigners and the rest composed of Filipinos living overseas. Montenegro believes the economic environment in 2025 is more stable compared to the volatility of 2024, when inflation peaked and fuel prices soared. The firm’s prior strategic financial planning, which included building in a cushion for unpredictable economic variables, has helped manage inflationary pressures effectively. Even amidst rising costs for utilities, commodities, and staples like rice, Chroma has been able to adjust its rates, thereby offsetting increased operational expenses without sacrificing occupancy or guest satisfaction.
Looking ahead, Chroma Hospitality Group is poised for significant expansion. The unveiling of the Grafik Hotel at Camp John Hay in scenic Baguio City marks the addition of the company’s eighth hotel this year. Excitingly, construction is slated to begin in the third quarter of 2025 on a new 326-room Crimson Hotel in Clark, strategically located beside their existing Quest Hotel Clark. Early next year, plans are underway to start a Grafik Hotel in Duawon, Cebu, complementing the Moalboal Grafik Hotel, which is being developed under a third-party contract with hopes to open by 2027. These developments signal an anticipated 50 percent portfolio growth by the end of 2027, expanding from the current number of properties to between 12 and 15. Such aggressive growth not only underscores the company’s confidence in the Philippine hospitality sector but also its commitment to diversifying its footprint across key regional tourism hubs.
Beyond expansion, Chroma is playing a pivotal role in local tourism development and community revitalization. Montenegro currently assists the government of Ozamis City in Misamis Occidental to transform the area into a vibrant tourist destination, erasing past negative perceptions that hindered growth. This includes building infrastructure for a 300-room property near the old dolphin island reserve, with a soft opening planned for November. The company is actively involved in designing rooms, infrastructure, and adhering to standards to elevate the property’s appeal, while the local government will decide on its branding. Since its inception in 2015, Chroma has generated around 2,500 jobs across its hotel and restaurant portfolio, contributing not only to the economy but also to community upliftment. Reinforcing its dedication to sustainability, three of its properties were recently awarded the Good Travel Seal accreditation by Green Destinations, an internationally recognized certification. This certification honors Chroma’s commitment to sustainable tourism practices, ethical governance, and community impact—qualities increasingly valued by discerning global travelers.
Interestingly, the hotel industry’s ability to maintain growth amid a shifting economic landscape demonstrates the power of adaptability and foresight. Chroma’s strategy of focusing on customer value through superior service allows them to command higher room rates without deterring guests—a savvy approach especially relevant as inflationary pressures mount worldwide. This trend also speaks to a broader pattern emerging in hospitality, where experiential quality takes precedence over mere pricing. Moreover, the group's proactive role in regional tourism development hints at an integrated vision of hospitality that transcends the confines of a single hotel or resort, aiming instead to nurture entire communities, support local economies, and enrich visitor experiences holistically. In a world still recovering from the pandemic’s impact on travel, Chroma Hospitality Group embodies the resilience and innovation necessary to thrive and lead in the modern hospitality sector.
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