SM strengthens China presence with $70 million Xiamen hotel venture

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June 29, 2026 | 12:00am

MANILA, Philippines — The Sy family’s SM Prime Holdings Inc. has invested over P4 billion for its maiden hotel venture in China, a move that strengthens its strategic presence in the country where the group’s founder, the late taipan Henry Sy Sr., was born.

SM Prime has launched its first-ever hotel in mainland China, called voco Xiamen SM City. The STAR learned that the company has invested around $70 million for the development.

The four-star hotel, which is in partnership with the InterContinental Hotels Group (IHG), features 325 rooms designed for business travelers and young families.

The hotel is integrated into the 10-hectare SM Xiamen complex and is directly connected to the SM shopping mall.

voco Xiamen SM City is ideally situated close to some of the area’s most popular attractions and points of interest.

“At voco Xiamen SM City, we provide a thoughtfully crafted, relaxing stay with a playful spirit-where every moment is enjoyed,” IHG said in its website.

For Colliers Philippines director for research Joey Roi Bondoc, SM’s entry into the hospitality segment in China is a natural progression of the group’s expansion.

“It’s the ‘SM-ification’ of developments in China. Overall, it’s the ‘SM-ification’ of their property there,” Bondoc said, referring to the group’s integrated property development model.

“Business continues to expand in China. Trade shows are happening and there is demand for these types of events so accommodation facilities complement that. They have their captured market already with the offices and the retail options in the mall,” he said.

SM opened its first mall in China in 2001 and currently operates malls in Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, Suzhou and Yangzhou.

In November last year, SM expanded its mall presence in China with the opening of SM City Xiamen Haicang, its ninth shopping center in China and its second mall in Xiamen.

“They already have an office there and a mall (SM Xiamen complex). So it’s the SM model that they will be implementing there. You have a demand driver already for offices, and then you have a demand driver for your mall. So with these developments, a hotel is a viable investment,” Bondoc said.

Bondoc said the question now is what else would SM build in its Xiamen complex moving forward.

“Since they have hotel, office and retail already, so what else will they add? Here in the Philippines, the model usually involves a school. Of course there is the convention center also,” Bondoc said.

“Or will they deviate a little bit? What I observe that they don’t have in the Philippines is a health facility. That’s interesting also. Will they partner with a health provider in China to add a hospital or a clinic in that property?” he said.

SM Prime is the largest integrated property developer in the Philippines with a diverse portfolio of shopping malls, modern residences, prime office spaces, premium hotels and world-class convention centers.