Travellers hotel group’s net income down to P251M
The operator of Resorts World Manila, an integrated gaming complex in Pasay City, saw earnings fall in 2017 after a deadly attack caused the temporary closure of its casino.
Travellers International Hotel Group disclosed to the Philippine Stock Exchange yesterday that net income last year dropped to P251.15 million from P3.4 billion in 2016.
The decline was led mainly by the drop in gaming revenue, which typically accounts for the bulk of its income. Gross gaming revenue last year hit P17.12 billion, down by over 27 percent.
This was offset, in part, by hotel, food and beverage revenues. This segment went up 8.5 percent to P2.8 billion, boosted by increased foot traffic from big events such as the Philippines’ hosting of the 31st Asean summit in November 2017.
Overall, net revenue in 2017 hit P19.26 billion, lower by more than 23 percent.
Travellers said its hotels registered an average occupancy rate of 79 percent. Its hotels are Maxims, Mariott and Remington.
Resorts Manila’s casino was nonoperational for 27 days in June following the rampage on June 2 by a lone gunman, who also set on fire the casino, killing a number of guests and employees.
In relation to this, Travellers incurred some P430.35 million in losses from casualty, net of insurance claims. Its expected “minimum” insurance and recoveries from property damage and other casualty losses stood at P762.55 million, its stock exchange filing showed.
In a separate statement, Travellers said foot traffic continued to recover in Resorts World Manila toward the end of 2017. It averaged 27,000 people in the fourth quarter of the year, versus 23,000 visitors in the third quarter. Gross gaming revenue was also up by 22 percent in the fourth quarter compared to the previous quarter.
Resorts World is opening new hotels starting the middle of the year in its latest expansion phase dubbed Grand Wing.
Grand Wing will have three international luxury hotels—Hilton Manila, Sheraton Manila Hotel, and Hotel Okura Manila, adding about 940 rooms. It will also include new gaming and retail spaces, as well as six basement parking decks.
