GGRAsia – Bloomberry considering disposal of Jeju casino in Korea

Bloomberry considering disposal of Jeju casino in Korea

Jun 17, 2016 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck

Asian casino operator Bloomberry Resorts Corp confirmed on Friday that it was considering selling its Jeju Sun Hotel and Casino on Jeju Island in South Korea.

“The company confirms that selling the property in Jeju Island, South Korea is one of the options it is looking at,” Bloomberry stated in a filing to the Philippine Stock Exchange.

“However, no agreement has been signed… to date,” the document added.

Friday’s filing aimed to clarify a news report that said Bloomberry was considering the disposal of Jeju Sun Hotel and Casino, due to the property’s lacklustre performance.

Bloomberry acquired a majority stake in the venue in April last year. Following the takeover, the property – previously known as T.H.E. Hotel and LVegas Casino – was rebranded Jeju Sun Hotel and Casino.

The Jeju Sun casino was closed between May and September last year for renovation and expansion works of the gaming area. Casino operations were again suspended between November 16 and December 15, as part of a penalty imposed by the local regulator because of tax issues relating to the previous management of the property, said Bloomberry in its first quarter 2016 results.

Jeju Sun posted gross gaming revenue of PHP23.3 million (US$502,000) in the first quarter of 2016, according to Bloomberry. It recorded negative earnings before interest, taxation, depreciation and amortisation of PHP197.7 million for the period.

“The property is still in the process of ramping up its gaming business after refurbishing and expanding the gaming area in 2015,” Bloomberry wrote in its results announcement for the first quarter of 2016.

Jeju Island is home to eight casinos, all for foreigners only. The semi-autonomous province recently has attracted a lot of new gaming-related investment.

Among the projects announced for the island is Resorts World Jeju, backed by Genting Singapore Plc and mainland China real estate developer Landing International Development Ltd. The property should open in late 2017, according to the promoters.

Last month, a unit of Asian casino investor Melco International Development Ltd announced it was to provide consultancy services to a casino that is “to be developed” over a period of three years on Jeju Island.

South Korean firm Lotte Tour Development Co Ltd and Chinese state-owned developer Greenland Group are collaborating on a Jeju project – the “Dream Tower” – which also includes a casino.