SM Hotels and Conventions Corp. (SMHCC) is partnering with Hong Kong-based international hospitality chain the Shangri-La Group, to open a new coastal luxury resort in Nasugbu, Batangas.
In a news statement, the SMHCC said its new resort called Shangri-La Santelmo Cove, will rise in Hamilo Coast, a 5,900-hectare master-planned sustainable beach resort town owned by its parent firm, SM Prime’s Holdings Inc.
SMHCC Vice President for Business Development Neil Rumbaoa told the BusinessMirror that they have yet to finalize the capital expenditures to build the new resort. ‘We’re not there yet. We’re at the very, very early stage of planning and design,’ he said, but ruled out any capital investment from Shangri-La, which owns and operates their own hotels and resorts in the Philippines.
He revealed that the hotel management agreement signed with Shangri-La will be for ’15 years plus 15 years’ and will be in effect starting 2031, when the new resort is projected to open. A construction timeline has yet to be drawn up as planning and design for the new resort may likely extend into next year, he added.
Santelmo Cove is named after ‘St. Elmo’s Fire’, the balls of light which appear over bodies of water. The Cove has been declared a protected marine sanctuary, with a white sand beach front on which Olive Ridley and green sea turtles or pawikan occasionally lay their eggs. It is an ideal area for snorkeling and diving due to the area’s diverse marine wildlife and sea creatures, which include giant clams or taklobos.
Asked about Santelmo’s sanctuary status, Rumbaoa clarified that, ‘There are two sites in the cove that are marine protected areas, but not the entire cove.’ He assured that ‘We won’t build over-the-water structures in the marine protected sites, just probably a dock, which will be located far from the protected areas.’
He underscored that SM, through Costa del Hamilo Inc. (CDHI), also has a partnership agreement with the World Wildlife Fund for marine conservation and sustainable development projects. CDHI is the developer of Hamilo Coast.
For another, he said, ‘One of the reasons Shangri-La was eventually chosen [as our partner] is their experience in environmental protection and sustainability, having incorporated marine and nature reserves in their resort operations.’ He cited the nature sanctuary in Shangri-La Rasa Ria in Kota Kinabalu, and a giant clam sanctuary at Punta Bunga Beach in Shangri-La Boracay, as examples.
Shangri-La Santelmo Cove will feature some 40 villas and 50 rooms and suites, thoughtfully designed to complement the natural terrain and ocean views. The resort broadens SMHCC’s portfolio across distinct hospitality segments and destinations in the Philippines, from city hotels and convention facilities to leisure properties and now, premium island destinations.
‘Shangri-La Santelmo Cove marks an important milestone in SM Hotels’ portfolio as we venture further into the island and leisure tourism landscape,’ said SMHCC Executive Vice President Peggy E. Angeles in the news statement. It also strengthens Hamilo Coast’s positioning as a destination where hospitality, nature, and responsible development come together.
‘Our partnership with Shangri-La Group brings together two organizations with extensive experience in creating distinctive hospitality experiences in the Philippines. Together, we look forward to developing a destination that not only showcases the extraordinary beauty of Hamilo Coast, but also demonstrates how luxury and responsible tourism can thrive alongside one another.’
The Shangri-La Group is known for its pioneering service in Asian hospitality, with a global expertise in operating acclaimed resorts and hotels. The Batangas resort will be the Group’s only wholly managed property in the Philippines, unlike its five other hospitality establishments, which it owns.
‘Shangri-La Santelmo Cove presents a unique opportunity to celebrate the Philippines’s natural and cultural treasures,’ said Sunny Paw, Chief Operating Officer of the Shangri-La Group.
‘For more than two decades, Shangri-La has built a strong legacy in the country through our hotels and resorts in Manila, Boracay, and Cebu. The Santelmo Cove project is a natural and exciting extension of this journey across the archipelago, allowing us to introduce a new chapter of sustainable, nature-led luxury that reflects both the spirit of the destination and the values of our brand.’
SM Prime reported a net income of P24.5 billion in the first of the year, almost unchanged from the same period in 2025. Revenues from its hotels and convention centers increased by eight percent to P4.4 billion, year on year.