MANILA, Philippines - Genting Hong Kong Ltd., the Malaysian-owned partner of real estate tycoon Andrew L. Tan in Resorts World Manila (RWM), continues to enjoy increasing patronage in its integrated casino project.
The co-owner of RWM remains bullish in the gaming and tourism prospects in the Philippines, highlighted by the latest expansion of the hotel and casino complex.
In the first semester, net income of RWM owner and operator Travellers International Hotel Group Inc. jumped 26 percent to $55.7 million from $44.1 million a year ago.
Genting said total revenues of Travellers Group climbed 30 percent to $468.9 million from $358.3 million last year.
“The increase in total revenues was mainly due to higher contribution from gaming and hotel businesses,†Genting said.
RWM recorded an average of 18,600 daily visitations in the first semester, up 12 percent from a year ago.
“The increase in visitations demonstrates the strong growth in domestic economy and government’s commitment to creating sustainable growth by driving tourism in the Philippines,†Genting said.
Operating expenses surged 48 percent to $187.5 million from $126.4 million mainly due to increased hiring, and marketing and advertising efforts to promote RWM.
Given robust operations in the Philippines, Genting committed to pursue the third phase of RWM, which started commercial operations in 2009.
“The expansion project is expected to propel RWM’s position as the prime entertainment and tourism hotspot in the Philippines, catering to the growing influx of visitors, domestic and international alike, to the property in the next few years,†Genting said.
Travellers Group allotted $600 million for the second and third phase of the 12-hectare RWM.
Specifically, the hotel and casino operator will complete the 5,000-seat convention center with function rooms in 2014, the Marriott Hotel expansion in 2015, and new hotels Hilton and Sheraton in 2016.
Genting said it will also extend Maxims Hotel and Marriott Hotel Manila while increasing the gaming area.
Last July, Travellers Group deferred its P42-billion initial market offering given volatile market conditions.
Aside from RWM, Travellers Group is also the company behind the $1.1-billion Resorts World Bayshore that will be opened in 2017 at the earliest.
The new casino complex is located in Entertainment City, a 120 hectare property reclaimed from Manila Bay. Pagcor Entertainment City is the Philippines’ answer to the Las Vegas, Singapore and Macau gaming hubs.
Travellers Group is a joint venture of the world’s third-largest cruise line operator Genting and local conglomerate Alliance Global Group Inc., which is also into property development, liquor and fastfood.