Travellers International Hotel Group has announced that it intends to spend up to $216.8 million this year in order to complete construction on the second and third phases of its Resorts World Manila development.
According to a report on Asia Gaming Brief, Travellers International Hotel Group revealed that the combined costs for the second and third stages of the venue stand at $400 million to $450 million. The Manila-based operator stated that it will pay out at least $173.5 million in 2016 to add a trio of hotels offering a minimum of 150,600 sq ft of gaming space alongside 34,444 ft of retail areas while declaring that the final figure could rise to as much as $216.8 million.
“The ongoing expansion will increase the existing inventory of hotel rooms from the current 1,700 rooms to 2,645 rooms,” Kingson Sian, President and Chief Executive Officer for Travellers International Hotel Group, said in a statement. “Together with over 193,700 sq ft 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.”
Sian stated that construction on the second phase of Resorts World Manila, which will see the property add 228 new hotel rooms for the west wing of the Marriott Hotel Manila plus additional entertainment areas in its Remington Hotel, is scheduled to be complete by September while adding that it was important to strike a balance between the development’s gaming and non-gaming offerings.
“At present, the non-gaming business accounts merely for 10% to 15% of our revenues and gaming remains our strongest revenue driver,” said Sian. “But, hopefully, we want to increase non-gaming’s contributions up to 30% of our total revenues.”
March saw Travellers International Hotel Group report a net profit for 2015 of $86.6 million, which represented a 25.9% decline year-on-year, while its net revenues dropped by 15.4% to $533 million.
“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 would not be investing,” said Sian.