Travellers Group earnings rise 25%

MANILA, Philippines - Improved gaming operations boosted the profits of Travellers International Hotel Group Inc., the operator of Resorts World Manila, in the first six months of the year.

Travellers Group disclosed that its net income surged by a quarter to P2.9 billion from P2.3 billion a year ago on P15.3 billion in combined gaming, hotel, food and beverage, and other revenues.

“Drops volume improved across all segments and had an average of 4.4-percent growth over first half 2013. Significant growth in volume was experienced in the second quarter 2014 versus same period last year averaging at 18.4 percent,” Travellers Group said. Drops volume refers to the amount of chips bought in the casino.

Hotel occupancy in the first half remained solid with all three hotels – Maxims, Remington and Marriott – registering average occupancy rates of about 90 percent.

“Capitalizing on operating leverage, total expenses for the quarter registered a decline in all items, with promotional allowance showing a 34-percent improvement, direct cost and general and administrative expenses reduced by 28 percent,” Travellers Group said.

The company said it expects better performance moving forward given the expansion program, backed by a P7-billion spending for Resorts World’s Phase 2 and 3.

Phase 2 involves the expansion of the existing Marriott Hotel Manila with the construction of the Marriott Grand Ballroom, as well as additional rooms through the Marriott West Wing. Phase 3 consists of three hotels: the Hilton Manila, Sheraton Hotel Manila and the extension of Maxims Hotel.

Phase 3 will also include a new gaming area, additional retail space, and six basement parking decks.

“The entire Phase 3 will be completed no later than the last quarter of 2017. Phases 2 and 3 will almost double the total number of hotel rooms to 2,400 rooms,” Travellers Group said.

Travellers Group earlier secured the gaming regulator’s approval to offer as much as 420 gaming tables and 4,148 gaming machines. As of end-2013, the Travellers Group had 287 gaming tables, unchanged from a year ago. Slot machines rose to 1,822 last year from 1,684 while electronic table game machines more than doubled to 210 from 100.

Travellers Group is a joint venture between the world’s third-largest cruise line operator Genting Hong Kong and local conglomerate Alliance Global Group Inc. of property tycoon Andrew L. Tan.

Aside from Resorts World Manila, Travellers Group is also the company behind the $1.1-billion Resorts World Bayshore that will be opened in 2017 at the earliest.