Genting Hong Kong Ltd (hk:678) partnered with the Alliance Global Group Inc in the Philippines to form the Travellers International Hotel Group Inc which is the company that operates Resorts World Manila, situated near the Ninoy Aquino International Airport in Metro Manila. This resort which opened in 2009 was the first integrated casino resort to open in the country and expansion plans at the resort continue to be in full swing.
Resorts World Manila is currently in phase three of its expansion project and based on a recent filing with the Hong Kong Stock Exchange, a new Marriot Hotel wing is expected to open in September 2016. The third phase expansion is expected to add more retail outlets and gaming facilities to Manila’s active casino industry. There are also plans for a phase four expansion in the near future.
Genting Hong Kong in its filing said that “Ongoing developments which will introduce three new hotels – Hilton Manila Hotel, Sheraton Hotel Manila and a new Maxims hotel – are expected to be completed by the end of 2017. Looking ahead, Resorts World Manila’s phase four development will give way to more retail alternatives and another international hotel brand”.
The total number of hotel rooms is currently at 1,226 during the first half of 2016 and with the opening on the new Marriot wing, an additional 228 rooms will be added to the integrated casino resort. Travellers International stated in the filing that during the first six months of 2016, hotel rate occupancy was around 82 percent, up from near 70% fr the same period a year earlier.
Travellers net profit during the second quarter of 2016 was around PHP638.2 million (US$13.7 million), an increase of around 3.1 percent when compared to the same period in 2015. Genting Hong Kong received a total of US$19.1 million in profits from Travellers for the first half of 2016 when compared to the US$22.6 million it received during the first half of 2015. Genting stated that the main reason for the drop was due to depreciation expenses and an increase in general marketing.
Genting Hong Kong also suffered losses in its casino cruise ship business after it reported a net loss of $54.6 million during the first half of 2016. The company made a net profit of $2.2 billion during the first half of 2015. Genting stated that the loss in 2016 was mainly due to the one-time accounting gain of $1.57 billion the company had in 2015 due to the reclassification of its investment in Norwegian Cruise Line Holdings and the US$599.6 million made from the sale of shares in Norwegian Cruise.