Resorts World Manila attack burns a hole in Travellers Q2 pocket

Resorts World Manila attack burns a hole in Travellers Q2 pocket

Philippine-listed casino operator Travellers International Hotel Group, Inc. (TIGHI) posted a PHP312.09 million (US$6.09 million) net loss in second quarter of the year.

Many analysts expected Travellers to incur a net loss especially after it was forced to close Resorts World Manila’s gaming floor in the light of the June 2 arson attack that claimed 38 lives.

Resorts World Manila attack burns a hole in Travellers Q2 pocket“Due to the closure of the casino in June, drop volume in the months of January to May translates into the drop volume run rate for the 1st half,” Resorts World Manila reported.

In a disclosure to the Philippine Stock Exchange, Travellers reported that the net loss in the second quarter dragged the casino operator’s net income for the first of 2017 by 79 percent to P374.77 million ($6.8 million) year-on-year.

Gross gaming revenues for the first half of the year was also down to PHP 9.2 billion ($179.67 million) with the casino non-operational for 27 days in June. Gaming capacity at the end of June stood at 218 tables, 1,407 slot machines, and 110 ETGs.

The only saving grace for Travellers was its non-gaming segment, which increased 3.9 percent to P2 billion ($39.06 million) on the back of higher hotel occupancy rate. The average occupancy rate for its 3 hotels was at 80% while overall property visitation reached an average of 26,585 daily visitors.

Moving forward, Travellers said that it plans to convert the area of the second floor affected by the arson attack into a retail zone.

“We must be dynamic and aggressive to make sure that RWM is ready for increased competition and the expanding market,” said Kingson Sian, President & CEO, TIHGI. “RWM remains committed in implementing necessary enhancements that ensures the safety, security and enjoyment of our customers and guests.”

The Phase 3 development will have three hotels, namely, Hilton Manila, Sheraton Manila Hotel, and Maxims II, adding approximately 940 rooms. It will also include new gaming and retail spaces, as well as six basement parking decks.

The company reported that it has already invested approximately PHP 65 billion ($1.27 billion) since 2008. It vowed to continue contributing to the country’s appeal as a leisure tourism destination with the launch of Westside City Resorts World by 2020.