After deadly rampage, Resorts World finally turns luck around

Integrated gaming resort developer and operator Travellers International Hotel Group Inc. saw a 414.4-percent rebound in net profit last year to P1.44 billion as gaming operations normalized after a challenging period.

Operations at Travellers’ Resorts World Manila (RWM) came from a low base in 2017, during which the gaming business was suspended for 27 days after a gunman set the casino on fire.

Last year, Travellers’ gross revenues increased by 17 percent to P24.7 billion, driven by both gaming and non-gaming segments.

Gross gaming revenues (GGR) increased by 16.9 percent to P20 billion. For the fourth quarter alone, GGR surged by 45.1 percent year-on-year to P6.26 billion.

Betting volume at the casino improved by 36.8 percent, driven by the 59.1-percent increase in the high-roller or VIP segment, and the 3.7-percent increase from the non-VIP segment.

Higher gaming volume made up for the decline in the “win” rate for the year, which went down to 4.8 percent from 5.6 percent the previous year. A casino’s “win” or “hold” rate is based on the element of luck but is also affected by the spread of table limits, a player’s skill and resources and amount of time spent in the casino. While it’s often said that the house always wins, sometimes it wins more and sometimes less than the statistical probability.

In the case of RWM, gaming capacity increased to 299 tables and 1,822 slot machines as of end-2018 from 244 tables and 1,381 slot machines in the previous year. The increase was primarily due to the opening of the ground floor gaming area of the Grand Wing.

Likewise, non-gaming revenues rose by 17 percent to a record high of P4.7 billion. Property visitation increased by 11 percent, averaging 28,500 per day, while average occupancy rate for the four hotels—Marriott Hotel Manila, Maxims Hotel, Hilton Manila, and Holiday Inn Express Manila Newport City—stood at 79 percent with a total room count of 1,811.

“The improved performance was helped by the opening of the ground floor gaming at the Grand Wing as well as the launch of Hilton Manila and the Sheraton Manila Hotel,” said Kingson Sian, president and chief executive of Travellers. “Both hotels added 747 rooms to the company’s hotel portfolio.” —DORIS DUMLAO-ABADILLA