Acesite (Philippines) Hotel Corp has approved the suspension of reconstruction work at the Waterfront Manila Pavilion Hotel (pictured in a rendering) in Manila, with management saying the reopening of the property is unlikely to be reconsidered before 2028.
The decision was approved by the company’s board following a recommendation from management, according to a Thursday filing to the Philippine Stock Exchange.
The hotel, formerly known as Waterfront Manila Hotel & Casino, was severely damaged by a fire in March 2018. Reconstruction began in 2019 using PHP1.5 billion (US$24.5 million) in insurance proceeds received from the property’s insurers.
In Thursday’s announcement, Acesite said work slowed significantly during the Covid-19 pandemic and that a reassessment of the project’s commercial viability had prompted management to halt further reconstruction efforts.
The company stated that revised reconstruction costs have risen to PHP3.6 billion, more than double the original estimates prepared before the pandemic. It cited substantial increases in construction materials, labour and fuel costs, as well as the need for additional structural corrections, civil works and design modifications.
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.
Management, however, expressed concerns regarding tourism and gaming demand in the Philippines market.
“The inability of the local market to generate sufficient foreign room sales in 2026, as well as the weak indications of an uptick in tourism arrivals projected for 2027 due to the ongoing protracted U.S.-Israel-Iran war are issues that need serious attention,” the company stated.
Acesite additionally noted that Manila’s casino market was facing a “serious plateau” amid the rapid growth of online gaming. The company also said the number of inbound Chinese visitors had not recovered despite the Philippines’ visa-free policy for Chinese tourists.
“These considerations have prompted management to reconsider the pouring in of additional considerable sums to reopen the hotel at this point in time,” the firm noted.
Acesite said reconstruction would only resume once industry indicators, including visitor arrivals, hotel occupancy levels, average room rates and gaming revenues, show sufficient improvement to support debt servicing and investment returns.
“The earliest estimate of this is 2028,” the company said.
Acesite also disclosed that PHP764 million in retained earnings had recently been appropriated for the reconstruction project as part of efforts to strengthen the firm’s balance sheet.
In the meantime, the company said it would allocate an annual maintenance budget to ensure the hotel’s existing structure remains safe and usable while reconstruction remains suspended.
