Key points
- At this stage, this International Hotel News report understands that the existing operation is continuing normally as the companies examine their options and the implications of the approaching lease deadline.
- With the lease running until the end of 2027, attention is increasingly focused on whether Dusit will remain at the location or whether the site will eventually be repositioned.
- The Thai hospitality company has indicated that it intends to maintain an active presence in the Philippines regardless of the outcome of the Makati discussions.
The future of one of Metro Manila’s best-known luxury hotels is entering a decisive period, with Ayala Land Inc. (ALI) considering several possibilities for Dusit Thani Manila as the landmark property approaches the expiry of its land lease at the end of 2027. The five-star hotel in Makati has been a prominent part of the Philippine capital’s hospitality landscape for decades, but its long-term future at its present location remains unresolved.
Image Credit: Dusit Hotels and Resorts
Discussions between ALI and Thailand-based Dusit International are continuing, with executives acknowledging that different scenarios remain under consideration. ALI President and CEO Anna Ma. Margarita Bautista-Dy has said there has been “back and forth” between the parties, while no final agreement has yet been reached. At this stage, this International Hotel News report understands that the existing operation is continuing normally as the companies examine their options and the implications of the approaching lease deadline.
Lease Extension Remains on the Table
Dusit Thani Manila currently occupies valuable commercial land controlled by Ayala Land in the heart of the Makati Central Business District. With the lease running until the end of 2027, attention is increasingly focused on whether Dusit will remain at the location or whether the site will eventually be repositioned.
ALI chief finance officer Jed Quimpo has indicated that the company is waiting for its project team to assess the alternatives. For now, he said, the property is “continuing as is.”
A lease extension would allow Dusit Thani Manila to maintain operations at its established Makati address, preserving a hotel with more than 500 rooms and suites alongside restaurants, meeting facilities and other full-service amenities.
Dusit has previously stressed the strategic importance of Manila to its wider business. The Thai hospitality company has indicated that it intends to maintain an active presence in the Philippines regardless of the outcome of the Makati discussions.
A Hotel with Deep Thai-Philippine Connections
Dusit’s relationship with the Manila property stretches back almost three decades. The Thai hospitality group expanded internationally in 1997 through the acquisition of Hotel Nikko Manila.
Following extensive renovations, the property was relaunched as Dusit Thani Manila in 2008, strengthening the company’s position in one of Southeast Asia’s important metropolitan hospitality markets.
The hotel is operated through Philippine Hoteliers Inc., in which Dusit holds a major interest, while the underlying land is leased from the Ayala group.
That arrangement makes the approaching 2027 deadline particularly significant because any decision could affect not only the hotel but also the future use of a strategically positioned Makati site.
Ayala Could Consider a Bigger Redevelopment
A simple lease renewal is not the only potential outcome. Ayala Land has been examining substantial investments across Makati, including a multibillion-peso revitalization of major assets such as Glorietta and Greenbelt.
Against that backdrop, the Dusit Thani site could potentially become part of a broader redevelopment strategy. Previous reports have suggested possibilities ranging from redevelopment of the property to a new mixed-use project incorporating commercial, residential, retail or hospitality components.
Another scenario could involve ALI pursuing a different hotel arrangement. The Philippine property group has previously shown interest in expanding its hospitality portfolio, potentially through acquiring or operating a luxury hotel asset or partnering with another international brand.
However, none of these possibilities has been confirmed as the selected direction, and both sides remain cautious while negotiations continue.
Dusit Greenhills Signals Expansion Beyond Makati
Whatever ultimately happens in Makati, Dusit International is already preparing another major Metro Manila opening.
Dusit Greenhills Manila is scheduled to open in late 2026 within Primex Tower in San Juan. Developed in partnership with Primex Realty Corporation, the hotel is expected to occupy the upper 10 floors of the 50-storey tower and feature approximately 200 guest rooms.
Plans include Dusit’s Benjarong Thai restaurant, a rooftop swimming pool and bar, ballroom facilities, a gym and other upscale amenities. The opening will give the Thai group another high-profile base in Metro Manila before the existing Makati lease reaches its expiry.
Dusit has also outlined plans for additional properties across the Philippines, highlighting the country’s importance within its regional growth strategy.
A Defining Decision Approaches
The coming months could therefore determine whether Dusit Thani Manila begins another chapter at its familiar Makati address or whether one of the city’s most recognizable hotel sites undergoes a dramatic transformation. A renewed lease would preserve decades of continuity, while redevelopment could unlock substantial value from one of Makati’s prime locations.
For Dusit International, the opening of Dusit Greenhills Manila provides additional momentum and demonstrates that its Philippine ambitions extend beyond a single property. For Ayala Land, meanwhile, the approaching lease expiry presents a rare opportunity to reconsider a strategically valuable site as Makati itself undergoes major reinvestment. Until negotiations produce an agreement, Dusit Thani Manila will continue welcoming guests while the hospitality and property industries watch closely for what comes next.
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