Travellers International Hotel Group Inc. said it will be spending up to P10 billion (US$216.9 million) this year for the construction of Phase 3 of Resorts World Manila, local media reports.
“The combined cost for Phase 2 and Phase 3 is around $400 to $450 million. So, the P8-P10 billion capex will be for the completion of Phase 2 and mainly for the construction of Phase 3,” said Kingson Sian, president and chief executive officer of Travellers, at a press briefing after the company’s stockholders’ meeting.
According to Sian, Phase 3 will include a casino, retail stores and three hotels with a total of 14,000 square meters of gaming facilities and 3,200 square meters of retail stores.
Sian also added that Phase 2 will be completed in September, with 228 new hotel rooms for Marriott Hotel Manila’s west wing plus additional entertainment areas in Remington Hotel.
“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,” said Sian.
The chief executive added the key was to strike a balance between gaming and non-gaming businesses.
“At present, the non-gaming business merely accounts for 10 to 15 percent of our revenues, and that gaming remains our strongest revenue driver. But hopefully we want to increase the non-gaming’s contributions up to 30 percent of our total revenues,” he said.
Earlier this year, Travellers reported a decline in net profit to P4 billion in 2015 from P5.4 billion in 2014. The operator, which is owned 44.9 percent by Genting HK, reported net revenue at P24.6 billion in 2015, saying it was focused on building on mass and premium mass segments in 2015.
Sian said despite the oversupply of casinos in the region, the company remains optimistic about the market.
“With the oversupply situation now, obviously it will take time for the market to absorb it. But having said that, our view of the future is very bright; otherwise, we will not be investing,” he said.