Ayala Land allocates up to ₱80B to drive leasing, retail, and hospitality growth in 2026

From the Mandarin Oriental reopening to Arca South’s record-breaking debut: How Ayala Land is pivoting from land banking to operational excellence and high-margin leasing.

Ayala Land is investing up to ₱80 billion in 2026 to expand its leasing portfolio, upgrade flagship malls, and strengthen its hospitality and recurring income streams. From Arca South Mall drawing 200,000 visitors on opening weekend to new office leases totaling 82,000 square meters and the Mandarin Oriental Makati reopening with 276 rooms, the company is positioning itself to boost predictable earnings, support business growth, and create more opportunities for consumers and communities across the Philippines.

Company officials said the spending will increasingly favor income-generating assets such as offices, retail developments, and hospitality properties, reflecting a reduced need for land banking after several years of acquisitions. The approach aims to generate steadier earnings while improving margins through operational efficiency.

“Many of our renovated malls and hotels are now operational, and the focus shifts to consumer delight and operational excellence. After completing the renovation of five key assets in 2025, our focus is now monetizing these upgrades, and we project a 10 to 20 percent room rate uplift from these newly renovated properties,” said Anna Ma. Margarita Bautista-Dy, Ayala Land chief executive officer and president. 

Corporate demand remains active. The company signed three major office leases totaling 82,000 square meters in Quezon City and Cebu, and additional office space is scheduled to come online across key estates. This expansion gives businesses more options for locations in both established business districts and emerging growth corridors. The strategy positions leasing as a larger share of earnings, balancing property development with predictable cash flow and supporting continued investment and job creation.

Sustained interest in physical shopping destinations

Retail expansion is also gaining momentum. The newly opened Arca South Mall drew over 200,000 visitors during its first weekend, underscoring sustained public interest in physical shopping destinations. This launch anchors Ayala Land’s largest single-year retail expansion, with over 200,000 square meters of new retail space scheduled across multiple estates. With construction largely complete, the company’s focus has shifted toward improving tenant performance and enhancing customer experience inside upgraded malls.

Flagship reinventions are progressing as well. Glorietta and Greenbelt are set to reopen by mid-2026, following upgrades at Ayala Center Cebu and TriNoma completed last year. The company expects these improvements to boost rents by 15 to 20 percent, supported by refreshed layouts and updated tenant mixes designed to increase dwell time. Early turnout at Arca South demonstrates how new commercial hubs are shaping emerging districts beyond traditional centers, giving retailers access to new locations while energizing surrounding communities through shopping, dining, and services.

Restoring five-star hotel capacity in Makati

Hospitality remains a key component of Ayala Land’s strategy. The Mandarin Oriental in Makati is scheduled to reopen in the fourth quarter, adding 276 rooms and restoring five-star hotel capacity in one of the country’s main business districts. Renovated hotels and malls are projected to generate 10 to 20 percent rate improvements as upgraded properties return to full operations. 

Dy also highlighted the company’s infrastructure expansion, stating that it plans to double its cold storage capacity over the next few years, representing “meaningful steps in recurring income that will build over the next several years.” This move diversifies revenue streams beyond property sales while supporting businesses that rely on temperature-controlled storage.

On the residential side, Ayala Land continues to take measured steps. Dy said the company expects steady residential sales in 2026, backed by a ₱30 billion pipeline of new launches, and emphasizes projects with strong value propositions and sales momentum. This careful approach allows the company to protect margins and maintain its leadership in the residential market.

Leasing and hospitality revenues together reached ₱48.7 billion in 2025, up 7 percent from the prior year, while shopping center revenues climbed 5 percent to ₱24.2 billion, supported by improved occupancy and higher merchant sales. Office leasing revenues rose 5 percent to ₱12.2 billion, outperforming the broader market. Dy also noted the contribution of the New World Makati Hotel acquisition, which helped push hospitality revenue to ₱10.6 billion, a 9 percent increase year-on-year.

To maintain shareholder returns, Ayala Land plans to continue dividend payouts equal to 30 percent of the previous year’s net income, combining steady distributions with operational and capital expansion. With its strategic focus on leasing, retail, hospitality, and recurring income, the company is positioning itself to deliver predictable cash flow, measured growth across estates, and opportunities for both businesses and consumers in the Philippines.

 

 

Ayala Land is focusing its 2026 capital expenditures on leasing, retail, and hospitality, with over 200,000 square meters of new retail space, major office leases, and the reopening of Mandarin Oriental Makati.

 

 

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