Solaire Resort North to contribute significantly to Bloomberry’s GGR

The imminent inauguration of Solaire Resort North, a new casino complex in Vertis, Quezon City, has the potential to considerably increase the gross gaming revenue (GGR) in 2024 and 2025 for Philippine gaming firm Bloomberry Resorts Corp., according to a report released on Monday by Maybank Securities Inc.

Analyst Raffy Mendoza estimates that as Solaire Resort North grows, it might account for around 9% of Bloomberry’s total GGR in 2024 and 14% in 2025.

Mendoza projects that Bloomberry’s gross gaming revenue (GGR) will expand at a compound annual growth rate of 14% between fiscal years 2023 and 2026. This development will be fueled by contributions from Solaire Resort North, which is expected to open in May 2024, as well as a continued increase in gaming drop volumes, particularly in the mass and slots categories.

Bloomberry now manages the Jeju Sun Hotel & Casino in Jeju, South Korea, and the Solaire Resort & Casino in Entertainment City, Manila. In 2023, the company’s net income exceeded PHP9.52 billion (US$169.8 million), an increase of 85.2% over the previous year.

Touted as a US$1.0 billion project, Solaire Resort North would contain 526 guest rooms and suites, 2,669 electronic gaming machines, and 163 tables split across four casino levels. The property will cover 1.5 hectares and 38 stories. It is anticipated that the opening of Solaire Resort North would create around 4,200 jobs.

The chairman and CEO of Bloomberry, Enrique Razon, expressed hope that Quezon City’s tourism and economy would benefit from the new location. Maybank noted a number of potential risks for Bloomberry, such as a protracted decline in Chinese immigration and inflationary pressures on discretionary spending. The bank does, however, anticipate greater than anticipated GGR from Solaire North, particularly from participants in Central Luzon.

Bloomberry announced plans to build a third casino resort in Paniman, Cavite, southwest of Metro Manila, in May 2022, in addition to the Solaire Resort North project. Regarding Bloomberry’s settlement with Global Gaming Asset Management LLC, Maybank also commented, saying that considering its current PHP55.0 billion net debt position, the company may look into further financing options such loans, private placements, or asset sales.

Original story by: GGRAsia