Travellers to develop $1.1B casino project

MANILA, Philippines–Travellers International Hotel Group Inc., which operates the Resorts World Manila integrated casino in Pasay City, is formally taking over the development of a $1.1-billion integrated casino project in Entertainment City.

Travellers, a joint venture between tycoon Andrew Tan’s Alliance Global Group Inc. and Malaysia’s Genting Group, said in a stock exchange disclosure that it acquired 95 percent of Resorts World Bayshore City Inc., which will develop Bayshore City Resorts World.

The acquisition was valued at P16.15 billion although Travellers was required to pay only a quarter of that amount, the disclosure showed.

Bayshore City is expected to open in the fourth quarter of 2018, the last of four integrated casinos in what is being positioned as Manila’s version of the Las Vegas strip.

Jose Mari Lacson, head of research at stockbrokerage firm Campos Lanuza and Co., said the move made sense given that Travellers was an existing vehicle for the group.

In a separate statement, Travellers said Bayshore City Resorts World would have at least 1,500 hotel rooms to be managed and operated by international hotel brands once it opens its doors.

These include “The Westin Hotel Manila Bayshore” of the Starwood Asia Pacific Hotels and Resorts group, the “Hotel Okura Manila” of the Okura Hotels and Resorts and the “Genting Grand” and “Crockfords Tower” of the Genting group.

In addition to the branded hotels, Bayshore City Resorts World will have a 3,000-seater Grand Opera House, mall/cinema and commercial complex with retail component, department stores, food and beverage outlets and cinemas, entertainment and gaming facilities.

“Bayshore City Resorts World has commenced site development. Actual construction and development will start within the year,” Travellers said.

Other players in Entertainment City are ports king Enrique Razon Jr.’s Solaire Resort and Casino; City of Dreams Manila, led by a venture between billionaire Henry Sy and Macau’s Melco Crown Entertainment; and Tiger Resorts Leisure and Entertainment of Japanese billionaire Kazuo Okada.

Travellers earlier saw its first-semester net profit rise 25 percent year on year to P2.9 billion as its belt-tightening measures succeeded in offsetting the slowdown in gaming and non-gaming revenues.

First-semester revenues declined by about a fifth from the same semester last year to P15.27 billion as gaming revenues fell by nearly 22 percent to P13.58 billion over the same period.