Corporate News

Australian firm completes takeover of Clark hotel

Posted on February 11, 2016

AUSTRALIAN firm Frontier Capital Group Limited completed the takeover of Hotel Stotsenberg and Casablanca Casino in the Clark Freeport Zone, positioning itself for the influx of tourists with the upgrade of an international airport near the resort.

Frontier Capital told the Australian Stock Exchange yesterday it acquired Stotsenberg Leisure & Hotel Corp, marking its entry into the gaming and hospitality industry in a “bold move” to “greatly enhance shareholder value.

With a floor area of 12,530 square meters, the Stotsenberg Hotel and Casablanca Casino offers 239 rooms, 190 slot machines, 36 gaming tables and two VIP rooms. It also has banquet rooms, restaurant, gym, outdoor pool, conference facilities, bar and coffee shop.

The company, which also has interests in mining and creative multimedia services, had pegged the acquisition cost of Stotsenberg Hotel and Casablanca Casino at $26 million, payable in three tranches.

Frontier Capital secured a $25 million profit guarantee over five years from E!xcite Gaming and Entertainment, Inc., the operator of the hotel and gaming business.

“The development of the Clark International Airport, which is less than 2 kilometers from the hotel and casino, will help drive our expansion targets. Forecast profit is expected to more than double to $11.7 million over the next two years,” Frontier Capital Chief Operating Officer Ken Wong was quoted in the disclosure as saying.

The resort and casino likely netted $5 million last year, Frontier Capital said.

The Clark International Airport is undergoing a $1.5-billion expansion that will double the number of passengers to 8 million in 2017 and 80 million by 2032.

The Clark Freeport Zone, a former United States Air Force base, is located 80 kilometers northwest of Metro Manila. It has modern infrastructure facilities, generous fiscal and non-fiscal incentives, professional support services and other amenities. -- Krista Angela M. Montealegre