Travellers sets aside P9B for capex
MANILA, Philippines - Travellers International Hotel Group has set a P9 billion capital expenditure program this year, mostly to fund the expansion of Resorts World Manila which will double the size of the integrated resort’s gaming, hotel and retail facilities once completed in 2017.
On the sidelines of the company’s annual stockholders meeting yesterday, Travellers president Kingson Sian said the company sees no immediate need to raise funds as it has a net cash position of P8.1 billion and unused credit lines of P6 billion.
“We’re quite well-capitalized so no need to raise equity to fund the expansion of phase 2 and phase 3,” Sian said.
The expansion would entail an investment of about $650 million, Sian said.
Phase 2 involves the expansion of the existing Marriott Hotel Manila with the construction of a grand ballroom that can sit about 2,000 people as well as the addition of 227 rooms. Marriott Grand Ballroom is expected to be fully operational by the first quarter of 2015 while the Marriott West Wing will be open to the public by the end of 2015.
Phase 3, on the other hand, comprises two new hotels – Hilton Manila and the Sheraton Hotel Manila as well as an extension of Maxims Hotels – which will add an aggregate 877 key rooms to Resorts World Manila as well as a new gaming area. Both hotels are slated for completion in the second quarter of 2017.
Resorts World Manila currently has 4,000 slot machines and electronic table games.
Despite the entry of new players, Sian said Resorts World Manila continues to enjoy a high level of daily foot traffic ranging from 20,000 to 25,000.
Sian, said Travellers, a joint venture between casino operator Genting Hong Kong Ltd and Philippine conglomerate Alliance Global Group Inc., may also start construction of its second integrated tourism estate, Resorts World Bayshore at the Pagcor Entertainment City this year or early next year. At least $1 billion will be invested in the project, which will be three times the size of Resorts World Manila.
Resorts World Manila is the first integrated gaming, entertainment, leisure and hospitality resort in the country, situated on an 11.5 hectare property across the Ninoy Aquino International Airport Terminal 3 in Pasay City and within a mixed-use community dubbed Newport City.It features residential condominiums, hotels, restaurants, shops and offices developed by businessman Andrew Tan’s Megaworld Corp.