Resorts World operator earmarks P10 billion for capex

The Travellers International Hotel Group Inc. has alloted up to P10 billion in capital spending this year mainly to complete the construction of the third phase of Resorts World Manila, which includes three hotels and gaming and retail spaces.

“Today the Philippines is gradually becoming an established tourism and entertainment destination, and we continue to see a lot of potential for further growth. As such, we have allotted more resources for continued expansion,” Travellers President and CEO Kingson Sian said.

He told reporters after the company’s stockholders’ meeting that the construction of the third phase worth $400 million to $450 million is ongoing, and part of the development is scheduled to open starting at end-2017 until the first half of 2018.

Sian said building three more hotels—the Hilton Hotel Manila, the Sheraton Manila Hotel, and Maxims Hotel’s new wing—would increase the existing inventory of hotel rooms from the current 1,700 rooms to 2,645 rooms.

He noted that the Phase 2 expansion was almost complete with the imminent completion of the Marriott West Wing, which added 228 hotel rooms. This will open in September.

Sian said entertainment areas had also been added in Remington Hotel, which strengthened its non-gaming portfolio.

“Together with over 18,000 square meters of retail space, a world-class theatre, 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,” he added.

Sian also said the construction of Phase 4 of the Resorts World Manila, which involved the building of hotels with 1,000 rooms and more retail spaces, was targeted to start next year.

“Of course, we have already gaming [facilities and offerings], so we’re supporting that with a lot of the non-gaming. We’re obviously the only player doing that now, building a lot capacity on the none-gaming side,” he said.

Non-gaming portfolio includes hotel, retail, entertainment, MICE (Meetings, Incentives, Conferencing, Exhibitions), and food segments.

In 2015 the company booked P27.7 billion in gross revenues, with gaming revenues contributing P24.2 billion and non-gaming revenues at P3.5 billion.

“At this point, I think gaming will continue to drive bulk of the revenues but over time, as we build out the non-gaming, it will increase. But as a proportion, gaming will continue to be the dominant revenue driver,” Sian said.

He said non-gaming portfolio currently comprises 10 percent to 15 percent of the company’s total revenues.

This is expected to increase to 30 to 35 percent with the completion of Phase 4 of Resorts World development, he added. RIZA LOZADA