Travellers parent flags hotel biz expansion to 2028

Philippine conglomerate Alliance Global Group Inc, which promotes the Newport World Resorts casino complex in the country’s capital via its unit Travellers International Hotel Group Inc, issued a press release on Monday outlining a circa five-year-long programme for expansion of its hotel business.

“By 2028, the group will grow its hotel capacity to around 11,000 room keys,” stated the announcement.

The press release did not specifically mention casino resort business as part of the plan that would mean a circa 47-percent increase in the hotel room capacity of the parent group.

Such growth would nonetheless represent an increase from “7,500 room keys spread across 19 international and home-grown operating hotel properties located all over the country”. The firm said it expects to have by 2028 “around 11,000 room keys, with the addition of six new big hotels to its portfolio under the Megaworld Hotels & Resorts brands located in various townships throughout the country,” said the press release.

In comments reported on Thursday following the annual meeting of Alliance Global, chief executive Kevin Tan, specifically mentioned the term “integrated resort” in the context of hotel business expansion. The term is typically used in the casino industry to denote a large-scale venue with hotel and meeting space, and other non-gaming leisure facilities, as well as a casino.

Mr Tan was cited on Thursday by the Philippine Inquirer as saying: “As for expansion outside Metro Manila, we are actively looking at some of the key tourism hubs all over the Philippines as potential expansion sites for our integrated resort business.”

In a Friday filing to the Philippine Stock Exchange, Alliance Global confirmed the intention of “exploring new locations” to expand its integrated resort business. “However, no firm plans have been made regarding the locations or timelines when these expansion plans will be implemented,” the firm said.

Travellers International already operates 2,199 rooms via five hotel brands at gaming complex Newport World Resorts. The firm’s capital expenditure for 2023 is to reach PHP4 billion (US$71.3 million), mainly to support the ongoing expansion projects at the casino resort complex, according to the parent company.

Monday’s press release mentioned new hotels from the group in Parañaque City, Laguna; Bacolod City in Negros Occidental; the City of San Fernando in Pampanga; Boracay island in Malay; Aklan; and in San Vicente, Palawan.

“Alliance Global remains… the biggest player in the Philippine tourism sector, with the largest array of international and home-grown hotels at varying price points to cater to all types of tourists and visitors. With the surge in domestic and international tourism activities, all our hotels have been experiencing high occupancy rates and much-improved average daily room rates,” Mr Tan was quoted in Monday’s announcement as saying.

In May, Alliance Global said it had agreed to acquire the stake of now-defunct Genting Hong Kong Ltd in the operator of Newport World Resorts

Alliance Global had stated in a mid-May filing that first-quarter gross gaming revenues at Newport World Resorts increased by 36.2 percent year-on-year, to just above PHP8.89 billion.

Hakan Dagtas, chief operating officer of Newport World Resorts, told GGRAsia in a recent interview, it was likely that overall revenue of the complex would grow during 2023, after an-already strong 2022.

The Philippine casino sector produced GGR of PHP59.26 billion in the three months to March 31, up by 80.9 percent from the prior-year period, showed official data. The tally – excluding revenue from bingo operations and electronic games parlours – rose by 5.8 percent sequentially.

 

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