SM City Baguio
A major SM Supermall and mixed-use retail complex in Baguio, Philippines.
Last updated October 14, 2026
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Overview
SM City Baguio is a large shopping and entertainment complex operated within the SM Supermalls network in Baguio, Benguet, Philippines. It occupies Luneta Hill, a prominent site above Session Road and overlooking Burnham Park, opposite Baguio City Hall. The complex is one of the largest shopping destinations in the North Luzon region and is closely associated with the city’s role as a highland tourism, education, government, and commercial center. The mall formally opened on November 21, 2003, following a development process that began with SM’s acquisition of the Luneta Hill property in 1988 and a series of planning, ownership, and public-policy disputes. The site had previously been occupied by the Pines Hotel, whose building was destroyed by fire in 1984. Earlier concepts reportedly contemplated a hotel and a separate mall connected by an elevated walkway, but the final project became a single major shopping complex on the former hotel site. Construction began in 2001 and continued for approximately two years before the opening. SM City Baguio was designed to respond to the local climate and landscape rather than simply reproduce a conventional enclosed urban mall. It was among the first SM Supermalls to operate without air-conditioning in its common areas, using natural light and ventilation. Its architecture incorporates Cordilleran references, including a veranda inspired by the Banaue Rice Terraces. The atrium supports natural ventilation, while the complex also uses recycled water. At opening, the mall had six levels, more than 100,000 square metres of retail space, and parking for approximately 800 vehicles. Later additions expanded its recreational, office, parking, and outdoor-dining functions. The core retail offer includes an SM Supermarket, department-store and specialty-retail space, restaurants, services, cinemas, and the Cyberzone technology area. A Department of Foreign Affairs consular office at the mall provides passport services and has been described as the first and only passport office in the Cordillera Administrative Region. The wider property has also developed into a mixed-use cluster. SM Cyber Baguio and SM Fiesta Strip on Harrison Road accommodate business-process outsourcing and other commercial tenants, while the SM Power Station Building provides an additional facility. Outdoor areas such as North Terrace, Sunset Terraces, and Sky Terrace extend the complex beyond its enclosed retail floors. Sky Ranch Baguio, an adjacent amusement area, opened on November 8, 2018. Its attractions include a carousel, Viking ride, drop tower, and the Baguio Eye Ferris wheel, which has air-conditioned gondolas. Other later improvements included a multi-level carpark annex, additional terraces, and upgraded outdoor public areas. The Sky Terrace opened in October 2020 after its planned launch was delayed by the COVID-19 pandemic. The mall has also been a focus of environmental debate. Its expansion plans in the early 2010s attracted protests over the proposed removal or relocation of mature pine trees on Luneta Hill. Environmental groups and local advocates challenged tree-cutting permits and organized demonstrations, including the Occupy SM Baguio protest. Court proceedings resulted in temporary restrictions and later legal rulings affecting tree-cutting activity. The controversy made SM City Baguio an important example of the tension between urban commercial development, tourism-oriented investment, and preservation of Baguio’s pine-covered character. Today, SM City Baguio functions as a regional retail, leisure, services, and employment hub. Its location, open-air design elements, tourist-oriented attractions, and integration with surrounding SM facilities distinguish it from a purely enclosed shopping mall. The complex remains part of SM Prime Holdings’ Philippine mall portfolio, although detailed current ownership and executive information specific to the property is not established in the supplied references.
History
The Luneta Hill site occupied by SM City Baguio was formerly home to the Pines Hotel. The hotel building was destroyed by fire in 1984, after which the property became subject to foreclosure and ownership disputes. In 1988, SM, led by Henry Sy, acquired the strategically located property through an auction conducted by the Development Bank of the Philippines. The proposed transaction was challenged in subsequent years by parties connected with the former hotel owner and by Robinsons-related interests. Local objections also questioned whether a portion of the land belonged to Baguio City because it had previously been associated with a city library site. These disputes did not prevent the property from moving toward commercial redevelopment. SM’s concept for a major Baguio development was publicized in the mid-1990s, including a presentation involving Henry Sy and then-President Fidel V. Ramos. The original vision reportedly included a hotel on the former Pines Hotel property and a separate shopping mall on a Government Service Insurance System lot, with the two sites linked by a covered overpass. That larger plan was not implemented. Development was delayed for several years while SM pursued other priorities, and public discussion at one point considered whether the site might become primarily a hotel project. Active construction eventually resumed in April 2001, and the final development was a shopping mall rather than the previously discussed hotel-and-mall combination. SM City Baguio opened on November 21, 2003. The completed mall occupied roughly 80,000 square metres of land and initially provided six levels, extensive retail space, cinemas, supermarket operations, technology retail, food outlets, and parking. Its design was adapted to Baguio’s highland environment. Design consultants and local architectural and engineering firms incorporated Cordilleran motifs, natural lighting, open verandas, and passive ventilation. Unlike most enclosed malls, the common areas were designed without conventional air-conditioning. The complex also used recycled water and emphasized an open relationship with its surroundings. As the mall matured, it developed beyond its original retail footprint. The property gained office and commercial facilities along Harrison Road, including SM Cyber Baguio and SM Fiesta Strip, as well as the SM Power Station Building. A Department of Foreign Affairs consular office was established within the mall, giving the complex a public-service role in addition to shopping and entertainment. New outdoor areas included North Terrace, Sunset Terraces, and Sky Terrace. Parking capacity was expanded through a five-level annex with more than 600 spaces. The most consequential phase in the mall’s history came with expansion plans involving Luneta Hill’s pine trees. In January 2012, thousands of residents and environmental advocates protested against the proposed removal or relocation of more than 100 trees for a multi-level parking facility and entertainment plaza. The campaign became known as Occupy SM Baguio. Further tree-related actions in April 2012 prompted additional demonstrations, online petitioning, and criticism of the permitting process. The Cordillera Global Network obtained a temporary restraining order that remained in effect until December 2014. After the Court of Appeals dismissed the petition, construction activity resumed and additional trees were reportedly cut in January 2015. The Supreme Court issued another temporary restraining order in March 2015 concerning tree-cutting activities, while allowing other parts of the expansion to proceed. In April 2019, the Court permanently prohibited SM from cutting or earth-balling trees at Luneta Hill. The complex continued to add attractions despite the environmental dispute. Sky Ranch Baguio opened beside the mall in November 2018 with amusement rides and the Baguio Eye Ferris wheel. The North Terrace opened in May 2019, the carpark annex in October 2019, and the principal levels of Sunset Terraces between December 2019 and February 2020. Sky Terrace, originally planned for May 2020, was delayed by the pandemic and opened in October of that year. SM City Baguio is now a mixed-use regional destination rather than only a conventional shopping center. It combines retail, food, cinemas, tourism attractions, office and outsourcing facilities, parking, outdoor spaces, and government services. Its scale makes it a major commercial node for Baguio and the wider Cordillera area, while its climate-responsive design and the long-running pine-tree controversy remain central to its identity.
- 2020
Sky Terrace opens
[1]The latest major outdoor attraction described in the reference material opened on October 2 after a pandemic-related postponement.
- 2019
Permanent prohibition on tree cutting
[1]The Supreme Court permanently barred SM from cutting or earth-balling trees at Luneta Hill.
- 2018
Sky Ranch Baguio opens
[1]The adjacent amusement park opened on November 8 with multiple rides and the Baguio Eye Ferris wheel.
- 2015
Supreme Court issues tree-cutting restraining order
[1]The Supreme Court issued a temporary restraining order concerning tree-cutting activities at the site.
- 2012
Occupy SM Baguio protest
[1]A large public protest opposed expansion plans connected with pine-tree removal on Luneta Hill.
- 2003
SM City Baguio opens
[1]The mall formally opened on November 21, 2003.
- 2001
Construction begins
[1]Active construction of the shopping mall resumed in 2001 after several years of delay and changes to the original plan.
- 1995
Initial SM Baguio concept is publicized
[1]Plans for an SM development in Baguio were presented, initially involving a broader hotel-and-mall concept.
- 1988
SM acquires the Luneta Hill property
[1]SM, under Henry Sy, won the auction for the prominent former Pines Hotel property.
- 1984
Pines Hotel destroyed by fire
[1]The hotel formerly occupying the Luneta Hill site was destroyed by fire, preceding the property’s foreclosure and later redevelopment.
Products and positioning
A regional SM Supermall combining everyday retail, tourism-oriented entertainment, government services, offices, and open-air public spaces in a climate-responsive highland setting.
Supermarket
SM Supermarket
The supermarket anchors the lower-ground retail area and provides groceries, household necessities, food products, and other everyday consumer goods for local residents and visitors.
Cinema and entertainment · 2003
SM Cinemas
The mall’s cinema complex is located on the third level and forms part of its leisure offer alongside restaurants, retail stores, and other entertainment facilities.
Technology retail · 2003
SM Cyberzone
Located on the third level, Cyberzone brings together technology, electronics, mobile-device, accessories, and telecommunications retailers within the mall.
Government service
DFA Consular Office Baguio
The Department of Foreign Affairs consular office provides passport and related consular services from the mall’s upper-basement area. It has been described as the first and only passport office in the Cordillera Administrative Region.
Amusement park · 2018
Sky Ranch Baguio
The adjacent Sky Ranch is an outdoor amusement area with rides including a Viking attraction, carousel, and drop tower. Its signature Baguio Eye Ferris wheel has a 45-metre diameter, stands about 50 metres high, and carries 24 air-conditioned gondolas.
Office and commercial facility
SM Cyber Baguio
A five-floor facility along Harrison Road that accommodates business-process outsourcing and other commercial tenants, together with selected retail and service businesses.
Office and commercial facility
SM Fiesta Strip
A two-floor Harrison Road facility positioned near Sunshine Park and used for commercial and outsourcing operations, including a Teleperformance site.
Outdoor retail and dining area · 2019
North Terrace
An outdoor-facing addition in front of the supermarket entrance that expands the mall’s public, dining, and tenant areas beyond the enclosed shopping floors.
Outdoor retail and dining area · 2019
Sunset Terraces
A multi-level terrace development opened in phases from December 2019 through February 2020, adding open-air commercial and leisure space to the complex.
Outdoor public space · 2020
Sky Terrace
An outdoor attraction and public-facing area that opened in October 2020 after its planned launch was postponed by the COVID-19 pandemic.
Brand decisions
2020
Open Sky Terrace after pandemic postponementProduct launchBackground
The outdoor attraction was originally scheduled for May 2020, but the COVID-19 pandemic delayed the planned opening.
Action taken
SM City Baguio opened Sky Terrace on October 2, 2020.
Aftermath
The opening added another outdoor area to the complex during a period when operating conditions were affected by the pandemic.
2018
Launch Sky Ranch BaguioProduct launchBackground
SM expanded the complex’s tourism and leisure proposition beyond conventional retail.
Action taken
Sky Ranch Baguio opened on an adjacent site with amusement rides and the Baguio Eye Ferris wheel.
Aftermath
The property gained a dedicated outdoor entertainment attraction serving both residents and visitors to Baguio.
2012
Pursue expansion at Luneta HillStrategyBackground
SM planned additional parking and entertainment facilities on the mall property, where mature pine trees were located.
Action taken
The expansion proceeded through permitting, earth-balling, and tree-cutting activity, prompting large protests and legal challenges.
Aftermath
Temporary court orders, continuing public opposition, and a 2019 permanent prohibition on cutting or earth-balling trees altered the legal and environmental parameters of the expansion.
2001
Proceed with a mall-centered developmentStrategyBackground
Earlier concepts for the Luneta Hill site contemplated a hotel, a separate mall, and a connecting covered walkway. Development was delayed and the original multi-site concept was not carried out.
Action taken
SM proceeded with construction of a full-scale shopping mall on the former Pines Hotel site rather than the previously discussed hotel-and-mall arrangement.
Aftermath
The resulting project opened in 2003 as SM City Baguio and became a major regional retail complex.
Sources2 sources
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