The Hong Kong-based parent group behind the under-construction “LETX Resort” (pictured in an artist’s rendering), described as the “main hotel casino” at Westside City, in the Philippine capital Manila, believes it will have “sufficient working capital to maintain its operations and to meet its financial obligations” to complete the project.
The information was in LET Group Holdings Ltd’s annual report for 2024, published on Thursday. The group only published its 2023 annual report the same day.
The 2024 report noted: “Based on the latest estimates, the completion and opening of the main hotel casino are now targeted for the third quarter of 2026.”
That was an affirmation of a June filing by Philippines-listed Suntrust Resort Holdings Inc, the promoter of the LETX Resort, and which is indirectly-controlled by LET Group.
The LET Group, chaired by businessman Andrew Lo Kai Bong, said in its Thursday update it would be able “to raise adequate funds to finance the development of the main hotel casino project” at Westside City “in the next twelve months from 31 December 2024”.
That was despite in the year to December 31, 2024, having “defaulted the repayment of other borrowing” with a principal amount of HKD137.5 million (US$17.5 million)”.
As of December 31 last year, the group had entered into agreements which involve capital commitments of just above HKD1.89 billion, “mainly in relation to the construction of the main hotel casino” in Manila.
“Pursuant to the agreement of bank borrowing, the group is required to complete the construction of the main hotel casino by 31 December 2025 or such later date as the bank and the group may mutually agree upon writing, otherwise, it will constitute default of the bank borrowing,” said LET Group on Thursday.
The parent has several times put back the completion date on the hotel casino scheme in the Philippines.
The group stated: “The directors are satisfied that it is appropriate to prepare the consolidated financial statements on a going concern basis.”
According to the 2024 annual report, the LETX Resort will have “over 300 gaming tables and over 1,300 electronic gaming machines for both the mass and VIP markets; over 450 five-star luxury hotel rooms and suites; a mall composed of food and beverage and retail units; and a parking facility with over 1,000 slots.”
The group recorded a profit attributable to equity holders of the company of approximately HKD54.7 million for the year ended December 31, 2024, down from approximately HKD278.5 million for 2023.
Consolidated adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) from continuing operations were HKD59.4 million versus HKD33.9 million for full-year.
The 2024 annual report said the parent’s profit for the year was mainly on reversal of share of loss of a joint venture of approximately HKD232.9 million; partially offset by net exchange losses of approximately HKD169.1 million; and a net loss on deregistration of a joint venture of approximately HKD8.9 million.
In full-year 2024, the Russian casino resort Tigre de Cristal, which is 77.5 percent-owned by a LET Group unit, Summit Ascent Holdings Ltd, contributed to the parent certain revenue – via gaming and hotel operations – of approximately HKD414.5 million and gross gaming revenue of circa HKD483 million.
