Travellers International Hotel Group, owner and operator of Resorts World Manila in Manila Bay, in the Philippines, has said the first phase of its US$1.1bn second casino should be complete by 2018.
Travellers, controlled by Alliance Global Group and Genting Hong Kong, will commence construction on Resorts World Bayshore within the next three months with completion of the project delayed from the initial date of 2016 due to the turnover of the land.
Kingson Sian, President of Travellers International said of the details: “We will disclose at an appropriate time. When you open the latest, you would have seen what they have so you can do something that they don’t have.”
The development will be the last licensee to open in Manila Bay known as Entertainment City.
Resorts World Bayshore will include three hotels in its first phase with the Westin, Okura and Genting Hong Kong Group all coming to the fore with a combined total of 2,800 rooms.
This latest development will be three times the size of Resorts World Manila. Travellers reported unaudited consolidated financial results for the first six months of 2014, posting total gross revenues of P15.3bn from gaming, hotel, F&B and other revenues and a net profit of P2.9bn, up 25 per cent from a net profit of P2.3bn in the first half of 2013.
Hotel occupancy for the six months ended June 30, 2014 remains solid with all three hotels, namely Maxims, Remington, and Marriott registering average occupancy rates of about 90 per cent, Total room count for the three hotels is at 1,226.
Capitalizing on operating leverage, total expenses for the quarter registered a decline in all items, with promotional allowance showing a 34 per cent improvement, direct cost and general and administrative expenses reduced by 28 per cent.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P4.7bn four per cent higher compared to P4.5bn reported in the same period last year. Finance costs declined from P1.2 billion to P630.4 million representing interest expense.
Travellers remains on net cash position at P7bn at end of June 30, 2014, with reduced debt level as the company paid off some of its interest-bearing loans and borrowings. Total capital expenditures for the year is budgeted to reach the P7bn level as the company accelerated the execution of its Phase 2 and 3 plans of Resorts World Manila.
Phase 2 involves the expansion of the existing Marriott Hotel Manila with the construction of Marriott Grand Ballroom, as well as additional rooms through the Marriott West Wing. The Marriott Grand Ballroom is scheduled for commercial operations on March 2015, while the Marriott West Wing will be operational by the end of 2015. Phase 3 consists of three hotels – the Hilton Manila Hotel and the Sheraton Manila Hotel, as well as the new wing for the Maxims Hotel. Phase 3 will also include a new gaming area, additional retail space, and six basement parking decks. The entire Phase 3 will be completed no later than the last quarter of 2017. Phase 2 and 3 will almost double the total number of hotel rooms to 2,400 rooms.