Alliance Global Group Inc., the holding company of billionaire Andrew Tan, is injecting P7.8 billion in gaming unit Travellers International Hotel Group Inc. to support its recovery plan.
AGI said in a disclosure to the stock exchange the fresh capital infusion would be done through an increase in Travellers’ paid-up capital.
“The infusion of fresh capital to augment the working capital of Travellers will afford AGI’s entertainment and hotel business the opportunity to keep current with its obligations and catch the window of business recovery with the easing of COVID-19 restrictions,” AGI said.
No other details were provided.
Travellers is the owner and operator of Resorts World Manila. In the first nine months of 2021, RWM performed strongly year-on-year amid the easing, heightening and reimposition of lockdown restrictions.
RWM reported core revenues of P9.9 billion in the nine-month period, up by 16 percent from P8.6 billion a year ago and on the back of a one-time income of P5.6 billion of a foreign subsidiary in relation to the Westside City Project.
Net profit of surged to P2.1 billion during the period, up 139 percent year-on-year.
Gross gaming revenues jumped 37 percent to P12.8 billion on improved overall drops and higher gaming table capacity. With increased activity, promotional allowance expanded 66 percent to P4.8 billion from a year earlier. Net gaming revenues increased 24 percent year-on-year to P8.0 billion
Non-gaming revenues from hotel, food, beverage and other businesses were still down 11 percent year-on-year to P1.9 billion on less foot traffic and lower room revenue attributed to lockdown restrictions. Hotel occupancy rates in RWM ranged from 50 percent to 75 percent in the nine-month period.
Hong Kong-based Suncity Group reported that it signed a 45-year lease agreement with Travellers and Westside in 2020 for the development and operation of a casino and hotel at Manila’s Westside City Resorts World.