SM has opened its new arena in Cebu as part of a broader entertainment, convention and hospitality complex representing about ₱8 billion in investment, company executives said.
The development includes the SM Seaside Cebu Arena, an SMX convention center and two hotels under the Park Inn and Radisson brands.
The SM Seaside Cebu Arena occupies a 19,000-square-meter site and has about seven hectares, or 70,000 square meters, of gross floor area. The venue can accommodate up to 25,000 people and features 30 premier suites.
Chico Sy, president of SM Engineering, Design and Development Corp. (SMEDD), said the convention center is on track for completion by the end of the year, with its first event expected in the first quarter of next year.
The hotel component will take longer to complete and is targeted to open in the first half of 2028, he said.
Sy said the two hotels are intended to serve different customer segments, with one offering more affordable accommodation and the other targeting the upscale market.
“We wanted to make sure we’re able to give affordable accommodation and also very good luxury accommodation,” he said.
The mix of hotel brands is designed to support Cebu’s meetings, incentives, conferences and exhibitions market by giving business travelers, event organizers and tourists a wider range of accommodation options.
SM expects the integrated complex to help strengthen Cebu’s position as a destination for large concerts, conventions, sporting events and international tourism.
Sy said the group sees an opportunity to combine major entertainment events with Cebu’s island and resort attractions to draw visitors from other parts of the Philippines and nearby Asian markets.
He said concerts and other large-scale events could attract travelers from South Korea, Indonesia and Singapore, particularly because Cebu has direct international air links and an established tourism industry.
“Combining that concert with the island, that tourism combination, I think that’s wonderful,” Sy said.
He added that the development could help Cebu create a stronger link between global entertainment and tourism.
“That’s a new opportunity for Cebu to really develop where we can deliver global tourism with global entertainment,” he said.
Hans Sy, chairman of the executive committee of SM Prime Holdings, said the Cebu arena reflects the group’s long-term strategy of incorporating major entertainment and events infrastructure into township developments.
He said the project was made possible by the group’s acquisition of a large property in Cebu’s North Reclamation Area about two decades ago.
“This was done 20 years ago when we had big pieces of land,” he said. “I’m sure this won’t be the last.”
Hans Sy said future arena developments would likely form part of larger township projects, although the company would first need to secure suitably large land parcels.
“We’re still looking for a very big property,” he said when asked whether SM was considering another arena elsewhere in the country.
He said the group has a number of development projects in the pipeline but declined to identify a location for another arena.
Hans Sy also credited the late SM founder Henry Sy Sr. for the company’s long-term commitment to Cebu.
“My father has always believed in Cebu,” he said, recalling that the group first established a smaller presence in downtown Cebu before acquiring the larger reclamation property.
The opening of the Cebu arena gives SM two major indoor venues in the Philippines, alongside the Mall of Asia Arena in Metro Manila.
Hans Sy said having venues in both Manila and Cebu could give SM an advantage in convincing more international performers and event organizers to include the Philippines in their schedules.
“With now two venues, there’s a certain advantage that we can convince a lot of them to come,” he said.
He said SM is interested in bringing global performers with Filipino connections to Cebu, including Bruno Mars and K-pop groups with Filipino members.
The company is also exploring opportunities to host international sports competitions.
Hans Sy said sports organizers have discussed holding preliminary rounds of major tournaments in Manila and staging the championship rounds in Cebu.
He cited international volleyball and women’s basketball among the events that could potentially be held at the new venue.
“Sports tourism is something that we have missed out, and that is one of the things that we will fully support,” he said.
The Cebu arena also incorporates design changes and operational improvements based on SM’s experience with the Mall of Asia Arena.
Hans Sy said the venue includes a practice facility behind the main court, a less-steep seating layout and a larger seating capacity.
The company expects the arena, convention center and hotels to work as an integrated destination, allowing event organizers to hold concerts, sports competitions, exhibitions and conferences within the same complex while offering accommodation nearby.
Chico Sy said the project also demonstrates Cebu’s capacity to support large, internationally competitive developments.
He said SM hopes the investment will encourage other companies to pursue their own projects in the city.
“We’re trying to show that it can be done,” he said.
SM remains confident in Cebu’s long-term growth, he added, citing the city’s tourism appeal, expanding business base and ability to attract domestic and international visitors.
The company expects the full complex to support the growth of Cebu’s tourism, MICE and entertainment industries while creating more opportunities for restaurants, retailers, hotels, transport providers and other local businesses.
