Travellers’ 2016 capex seen to reach P10B
INTEGRATED gaming resort developer Travellers International Hotel Group Inc. has earmarked P8 billion to P10 billion for capital spending this year, mainly for the construction of hotel facilities under phase 3 of the expansion of Resorts World Manila in Newport City.
“Our phase 2 expansion is almost complete with the imminent completion of the Marriott West Wing, which will add 228 hotel rooms, on track to open in the second half of 2016. Also noteworthy is the additional entertainment areas in Remington Hotel which strengthen our non-gaming portfolio,” Travellers president Kingson Sian reported during the company’s annual stockholders meeting yesterday.
Sian said RWM’s phase 3 expansion—covering additional gaming and retail space, plus three more hotels—the Hilton Hotel Manila, the Sheraton Manila Hotel, and Maxims Hotel new wing—would start commercial operations by the end of 2017 until the first half of 2018.
“The ongoing expansion will increase existing inventory of hotel rooms from the current 1,700 rooms to 2,645 rooms. Together with over 18,000 square meters of retail space, a world-class theater, the country’s largest ballroom and multiple entertainment venues, we are on course to becoming one of the premier integrated entertainment and tourism destinations in Asia,” Sian said.
The RWM complex attracts 18,000 to 20,000 in foot traffic a day, Sian said in a briefing after the stockholders meeting.
Looking ahead, RWM’s phase 4 development will give way to more retail alternatives and another international hotel brand, scaling up hotel offerings in this estate to over 5,000, he said.
The next phases or RWM development are estimated to cost a total of $650 million, of which phase 3 alone will cost up to $450 million, Sian estimated.
Sian said Travellers would like to see the share of non-gaming revenue to total revenue growing to 30-35 percent from only 10-15 percent at present.
Asked whether Travellers would see a turnaround in gross gaming revenue (GGR) anytime soon, Sian said it would take the market five to six years to fully absorb the current oversupply.
At the Pagcor Entertainment City, there are two new integrated resorts—Solaire Manila and City of Dreams Manila. A third resort—led by the group of Japanese gaming magnate Kazuo Okada—is set to open next year.
With increased competition, Travellers’ GGR declined by 14.7 percent to P24.2 billion last year. Doris Dumlao-Abadilla
