Travellers International Hotel Group Inc said that during the second quarter of 2015 it had allocated about PHP1.4 billion (US$31.2 million) of the proceeds from an initial public offering (IPO) to the expansion of its Resorts World Manila casino venue (pictured).
It brings the total spending on enlargement of the property to PHP8.8 billion since the firm’s November 2013 IPO. The sum represents 52.6 percent of the IPO’s PHP16.8 billion net proceeds, the company said in a filing to the Philippine Stock Exchange on Thursday.
Travellers International is a venture between Philippines-based Alliance Global Group Inc and Genting Hong Kong Ltd, a subsidiary of Malaysia’s Genting Bhd.
The partners plan to double the size of the Manila integrated resort’s gaming, hotel and retail facilities once the physical infrastructure expansion is completed in 2017.
Resorts World Manila opened in 2009. The second phase of the property, which includes the enlargement of the Marriott Hotel Manila and the addition of 227 rooms, should be ready by the end of 2015. The ‘Marriott West Wing’ will cater primarily to VIP guests and Marriott rewards members, Travellers International said. As of June 30, PHP5.1 billion from the offering proceeds were used for the hotel expansion, the firm added.
A total of PHP3.7 billion from the IPO proceeds have been assigned to the third phase of Resorts World Manila. That will include more gaming space and two new hotels to be managed by Hilton Hotels and Resorts and the Sheraton brand of Starwood Hotels and Resorts. Travellers International has pledged to invest a further PHP5.8 billion in the third phase of the casino resort, it said in the filing.
In June, Travellers International’s president and chief executive, Kingson Sian, said the firm remains committed and on track to complete its expansion plans. “We made significant progress and built momentum last year which has put the company in a good position in 2015 and beyond,” Mr Sian said.
In September, Alliance Global was quoted saying the first phase of another Manila casino project to be operated by Travellers International, the US$1.1-billion Resorts World Bayshore, would be completed by 2018.
