Travellers International Hotel Group Inc said that during the third quarter of 2014 it has allocated about PHP2.4 billion (US$53.5 million) of its initial public offering (IPO) proceeds for the expansion of its Resorts World Manila casino venue (pictured). That brings the total spending in the expansion up to PHP3.5 billion since November’s IPO, or 14.5 percent of the net proceeds.
Travellers International is a joint venture between Philippines-based Alliance Global Group Inc and Genting Hong Kong Ltd, a subsidiary of Malaysia’s Genting Bhd.
The joint venture plans to double the size of the Manila integrated resort’s gaming, hotel and retail facilities once the expansion work is completed in 2017.
Resorts World Manila opened in 2009. The second phase of the property, which includes the expansion of the Marriott Hotel Manila and the addition of 227 rooms, should be ready by the end of 2015.
As of September 30, PHP2.1 billion from the offering proceeds had been allocated for the construction of phase 2, the company said in a regulatory filing on Wednesday.
Over PHP1.3 billion had been disbursed for phase 3, which will comprise a new gaming area and two new hotels – the Hilton Manila and the Sheraton Hotel Manila, Travellers International said. Phase 3 is due to be completed by 2017.
The firm had said in previous filings that the two phases are forecast to cost a total of about PHP29 billion.
Travellers International got PHP16.8 billion in net proceeds from its IPO in November 2013. The company said it would use about PHP260 million for general corporate purposes.
The casino operator last month subscribed to 3.23 billion shares of Resorts World Bayshore City Inc, the developer of Bayshore City Resorts World at Manila’s Entertainment City, upping its stake to 95 percent. On October 1, it broke ground on the US$1.1 billion Bayshore City Resorts World, scheduled to be open by the last quarter of 2018.
