Corporate News

Resorts World operator eyes debt, equity marts

Posted on April 24, 2013

TRAVELLERS International Hotel Group, Inc. -- joint venture of Alliance Global Group, Inc. and Genting Hong Kong Ltd. that operates Resorts World Manila -- is looking at tapping the debt and equity markets, which may include an initial public offering, to raise funds for its casino-hotel projects, the conglomerate said in a disclosure yesterday.

“We wish to clarify that Travellers is looking at various financing alternatives for its projects both in the equity and debt markets,” the disclosure read without elaborating.

Neither Travellers nor Alliance Global officials were available for comment on yesterday’s disclosure, which clarified an article published in The Wall Street Journal last April 22 that said Travellers plans “to raise more than $500 million from an initial public offering” of Resorts World Manila.

Last month, Travellers said it will begin in the second quarter construction of new Sheraton- and Hilton-branded hotels within Resorts World Manila, as well as expansion of the six-star Maxims Tower and five-star Marriott Hotel there.

These developments are part of plans to boost Resorts World Manila’s hotel room count to roughly 3,400 rooms in five years from 1,226 currently.

Resorts World Manila is a 12-hectare complex located within the Newport City mixed-use zone, across Ninoy Aquino International Airport Terminal 3 in Pasay City.

At present, there are three hotels in Resorts World Manila: 172-suite Maxims Tower, 342-room Marriott Hotel, and 712-room budget Remington Hotel.

Travellers is also set to build Resorts World Bayshore, a 40-hectare integrated resort-casino complex that will rise in the Bagong nayong Pilipino Entertainment City of the state-run Philippine Amusement and Gaming Corp. (PAGCOR).

Upon its projected completion in 2016, Resorts World Bayshore will have approximately 2,500 hotel rooms and an array of leisure, retail, gaming, and entertainment facilities, Travellers previously said.

Resorts World Bayshore is one of four firms licensed by PAGCOR to build in Entertainment City, the others being Bloomberry Resorts Corp. (Solaire Resort & Casino Manila), Belle Corp. (Belle Grande Manila Bay), and Tiger Resorts Leisure and Entertainment, Inc. (Manila Bay Resorts).

Alliance Global, Travellers’ parent, was incorporated in 1993 and listed in 1999, with initial investment in glass container manufacturing in Canlubang in Calamba, Laguna.

Alliance Global grew its net income by about 41.5% to P20.8 billion last year from P14.7 billion in 2011 on the back of growth of its property, liquor, and hotel units.

The firm plans to spend over P40 billion this year, versus about P35 billion earmarked in 2012, to bankroll spending for its principal business units and expects double-digit profit growth in 2013, Andrew L. Tan, Alliance Global chairman and chief executive officer, had told reporters in December last year.

Shares of Alliance Global lost P1.20 or 4.62% to P24.80 apiece yesterday from P26.00 each last Monday. -- Franz Jonathan G. de la Fuente