Travellers Int’l Hotel Group projects 20% growth

MANILA, Philippines - Travellers International Hotel Group, a joint venture of property tycoon Andrew Tan’s Alliance Global Group Inc. and Malaysia’s Genting Group, expects its bottomline and topline to grow 20 percent this year on the back of a projected increase in daily foot traffic at Resorts World Manila (RWM).

Sources said foot traffic at RWM, the country’s first privately-run integrated resort in Newport City, has picked up with the return of some Chinese high rollers into the country.

RWM turned in a dismal performance in the first nine months of 2012 as earnings were negatively affected by the tension between China and the Philippines.

Travellers, however, said traffic from China players has recovered to 50 percent of its level before the travel advisory was issued. 

Preliminary numbers for the fourth quarter last year were reportedly quite strong but still not enough to match 2011’s performance.

Travellers International posted a net profit of P4.8 billion in 2011, up 50 percent from P3.2 billion the previous year.

The company is banking on China’s growing middle class to boost revenues as rising income is expected to translate in more travel for these people.

Travellers International has began phase 3 expansion of RWM, which involves the construction of close to 1,000 new hotel rooms, a Sheraton Hotel which will house about 350 rooms, another five star hotel (350 rooms) and the expansion of the all-suite Maxims Hotel, which shall provide an additional 200 rooms.

The new phase, which will take three to four years to complete, will also entail the expansion of gaming and retail facilities to take advantage of the expected growth in tourist arrivals in the country.

Visitor arrivals are seen to hit seven million this year, significantly higher than the 4.5 million recorded in 2011.

RWM expects its room inventory to reach 2,800 by 2016 when tourist arrivals are expected to hit 6.5 million.

Located near the domestic and international airports, RWM is currently the largest casino complex in the Philippines.