TRAVELLERS International Hotel Group Inc., the listed operator of Resorts World Manila (RWM), said its net income declined 15.4 percent in 2016 on lower revenues from the VIP gaming business and higher finance costs due to the depreciation of the peso against the US dollar.
In a disclosure on Thursday, Andrew Tan-led Travellers announced P3.4 billion in net profit for 2016 compared to the P4 billion recorded in 2015. Revenues were relatively flat at P27.5 billion last year from P27.7 billion in 2015.
“The company registered gross gaming revenue of P23.6 billion in 2016 compared to P24.2 billion in 2015,” Travellers said in its quarterly report.
Its non-VIP segment drop volume increased by 8.3 percent, while the drop volume in the VIP segment contracted by 17.4 percent. Overall drop in 2016 decreased by 10.4 percent compared to 2015, Travellers said.
“Revenue from non-gaming activities, which include hotel, F&B, and other sources, contributed P3.8 billion during the year, increasing by 10 percent,” the company said.
The company said growth in non-gaming revenues can also be attributed to new opportunities in the MICE segment (meetings, incentives, conferences, and events) through the Marriott Grand Ballroom which became fully operational in June 2015. Increased revenues were also seen in the entertainment front, particularly with RWM’s theatrical production of Annie.
“We are confident that the diversity of our non-gaming businesses and attractive entertainment offerings set us apart as a tourism destination. This will enable us to deliver continued growth and stable financial performance in the years to come,” Kingson U. Sian, Travellers president and chief executive officer, said in a separate statement.
Total room count for the three hotels—Maxims Hotel, Remington Hotel, and Marriott Hotel Manila—has increased to 1,454 as of end-2016 with the addition of 228 premier rooms and suites from the Marriott West Wing which formally opened on November 30 last year. The Mariott West Wing opening caps RWM’s Phase 2 development.
“Philippine tourist arrivals have grown steadily in the past seven years with 2016 reaching six million international arrivals. Resorts World Manila [RWM] is ready to accommodate the influx of tourists to the country,” Sian said.
Travellers is currently working on its Phase 3 development which consists of three hotels—Hilton Manila, Sheraton Manila Hotel, and Maxims II—as well as development of additional gaming areas, new retail spaces and six basement parking decks.
Sheraton Manila Hotel is targeted for completion in the last quarter of 2017, while Hilton Manila will be opened in the first quarter of 2018.
It is also building RunWay Manila, a pedestrian foot bridge connecting NAIA Terminal 3 to Newport City. Its targeted completion in the second quarter this year is expected to make RWM “an even more convenient destination for leisure and business travelers,” Sian said.