GGRAsia – RWM operator Travellers sees 2018 profits recover sharply

RWM operator Travellers sees 2018 profits recover sharply

Mar 29, 2019 Newsdesk Latest News, Philippines, Top of the deck

Travellers International Hotel Group Inc, owner and operator of the Resorts World Manila casino complex (pictured) in the Philippine capital, reported full-year 2018 profit of PHP1.4 billion (US$26.6 million), nearly 400 percent higher than 2017.

The firm made no specific recommendation regarding dividend, but said in its results filed on Friday that it intended to maintain its policy of an annual cash, and or, share dividend payout of up to 20 percent of its net profit from the preceding year.

In 2017, profit at Travellers International had fallen sharply year-on-year, to approximately PHP289.3 million, compared to PHP3.4 billion in 2016. The 2017 deterioration had been due to the affects that year of the lone-gunman attack, fire and subsequent temporary closure of Resorts World Manila, the management had said in commentary at the time.

Travellers International, a venture between Philippine conglomerate Alliance Global Group Inc and casino cruise specialist Genting Hong Kong Ltd, stated in a Friday filing to the Philippine Stock Exchange that 2018 gross revenue was up 17 percent year-on-year, to PHP24.7 billion.

In a press release also filed with the bourse Travellers International said that the improvement had been “supported by the sustained growth in all gaming segments”.

Gaming revenue for full-year 2018 was PHP20.0 billion, compared to PHP17.1 billion a year earlier. Non-gaming revenues rose 17 percent year-on-year, to a “record high” of PHP4.7 billion.

Gaming activities contributed 81.0 percent of the gross revenues for 2018, while 19.0 percent was contributed by non-gaming activities, according to the results filing.

Earnings before interest, taxation, depreciation and amortisation rose 27 percent year-on-year, to just under PHP3.9 billion, from PHP3.0 billion in 2017.

The number of daily visitors to the property, a venue located next to Manila International Airport, increased by 11 percent, an average of 28,500 per day, said Travellers International.

The average daily occupancy rate for the four hotels at Resorts World Manila – Marriott Hotel Manila, Maxims Hotel, Hilton Manila, and Holiday Inn Express Manila Newport City – was 79 percent with a total room count of 1,811 units.

Kingson Sian, president and chief executive of Resorts World Manila, said in prepared remarks contained in Friday’s press release: “The improved performance was helped by the opening of the ground floor gaming at the Grand Wing as well as the launch of Hilton Manila and the Sheraton Manila Hotel.”

The latter two hotels added in aggregrate “747 rooms to the company’s hotel portfolio,” said Mr Sian.

According to the press release, the Grand Wing will have three international-standard luxury hotels.

In addition to Hilton Manila, which opened in October 2018, the Sheraton Manila Hotel is already in its soft-opening phase, and the Hotel Okura Manila is scheduled to open this year, bringing the Grand Wing hotel room count to approximately 940.

The new wing will include new gaming, entertainment and shopping space, as well as six basement parking decks.

Once construction of all hotels is completed, Resorts World Manila will have the highest number of hotel rooms for a single resort property in the Philippines, claimed Travellers International in its press release.