Acesite (Philippines) Hotel Corp has written to the Philippine Stock Exchange – in response to its enquiry – reiterating why the company has deferred its overall capital expenditure, including a delay to reconstruction work at Waterfront Manila Hotel and Casino (pictured in a rendering) in Manila.
In June the firm said it was unlikely that the reopening of the property would be reconsidered before 2028.
In its Thursday letter to the bourse, Acesite mentioned that as well as project costs on the Waterfont property – “including the casino areas” – having risen to PHP3.6 billion (US$58.7 million), the business also faced a “significant increase in the cost of labour and construction materials due to market inflationary pressures”.
The firm added: “To date, only minimal work has resumed.”
Acesite affirmed: “Following a comprehensive project review, the updated estimated budget to complete the restoration of the hotel, including the casino areas, is now approximately PhP3.6 billion.”
The hotel was severely damaged by a fire in March 2018. Reconstruction began in 2019 using PHP1.5 billion in insurance proceeds received from the property’s insurers.
In its Thursday commentary to the bourse, Acesite also noted need at the Waterfront site, for “additional structural reinforcements executed to strengthen the building’s foundation and civil works, including columns and beams”.
The firm was also making “strategic” changes to the layout of the “public areas, kitchens, and storage spaces, designed to maximise future operational efficiency,” and improve use of space.
Acesite also outlined that to “optimise the company’s cash flows, preserve liquidity, and ensure its ability to fund the reconstruction,” it had initiated a number of actions.
They included “postponement of all construction-related cash outflows until 2028 to preserve and protect immediate cash reserves.”
The firm would also ensure there were retained earnings going specifically toward eventual resumption of the project.
There would additionally be use of intercompany borrowings to cover fully, “essential operating expenses”.
Acesite also mentioned “implementation of a targeted bank borrowing strategy to secure funding for the reconstruction and project restart scheduled for 2028”.
The statement to the bourse added: “The company remains committed to the completion of the project and will provide further updates as material developments arise.”
Acesite – which is 56 percent owned by Waterfront Philippines Inc – had previously envisaged a phased reopening, with a soft launch targeted for the first quarter of 2026. The firm said that plan had been intended to spread out capital requirements associated with the reconstruction programme.
