Belle considers City of Dreams Manila expansion
The group behind City of Dreams Manila plans to expand within and beyond Entertainment City, while leveraging its partnership with Melco Crown Entertainment Ltd. (MCE). to become the country’s biggest integrated resort in terms of gross gaming revenue (GGR) this year.
On the sidelines of the company’s stockholders’ meeting, Belle Vice-Chairman Willy N. Ocier told reporters the 6.2-hectare ( ha) City of Dreams Manila is operating at full capacity and the SM-backed company is exploring opportunities for expansion “within that area or anywhere else outside Metro Manila” in partnership with Melco, the operator of the integrated resort.
“City of Dreams is growing significantly and there’s a good chance sometime this year it could be number one in gross gaming revenue among the integrated resorts,” Belle President and Chief Executive Officer Manuel A. Gana said.
Last year, City of Dreams booked a GGR of P25 billion, trailing Bloomberry Resorts Corp.’s P38.54 billion, inclusive of minimal contribution from South Korea’s Jeju Sun Hotel & Casino, according to their respective regulatory filings. Travellers International Hotel Group, Inc. clocked in P23.64 billion.
The local industry’s total GGR, including casinos operated by Philippine Amusement and Gaming Corp. ( PAGCOR), reached approximately $3 billion last year.
Belle is riding on the management expertise of MCE in running integrated resorts in China, as it brings in high rollers from “all over Asia.”
“We’re happy we have experts in the international industry helping us operate it and we expect the casino to start more and more fulfilling its promise this year,” Mr. Gana said.
Belle controls 78.74% of Premium Leisure Corp., its gaming subsidiary which in turn owns 100% of Premium Leisure and Amusement, Inc. — owner of the PAGCOR license for Entertainment City.
2ND CASINO
Belle is filing an application with PAGCOR to put up another casino once it identifies a second location outside Metro Manila.
“We have applied for a second site in line with the fact that our other licensee partners have second sites. We are applying based on the policy of level playing field,” Mr. Ocier said.
The Belle executive was referring to the plan of Bloomberry of billionaire Enrique K. Razon to put up a hotel and casino — similar to its Solaire Resort & Casino in Entertainment City — on a 1.5-hectare property within the Vertis North mixed- use development in Quezon City.
Travellers likewise owns Resorts World Manila in Newport City, and is constructing Westside City Resorts World in Entertainment City.
“They ( PAGCOR) said they will consider but they didn’t commit... PAGCOR is open to other areas outside Metro Manila especially when it is tourism related,” Mr. Ocier said.
Belle is also eyeing contiguous sites to expand City of Dreams, one of which is a 8,500 square meter (sq.m.) land owned by the company across the property. That may serve as the expansion area for the non-gaming components of the integrated resort, Mr. Ocier said.
In the first quarter, Belle’s consolidated net income surged 90% to P782.50 million from the P412.8 million registered in the same threemonth period a year ago, according to a regulatory filing.
“If you’re asking if Okada Manila has cannibalized from us, apparently not. Everybody’s growing,” Mr. Gana said.
Okada Manila is the third, the largest and most expensive development to open within the Entertainment City.
Belle’s recurring net profit rose 84% to P760 million from P412.8 million, without the impact of extraordinary items principally a capital gain on the sale of shares of SM Prime Holdings, Inc. in the first quarter of 2017.
The company’s share in the gaming income of City of Dreams Manila through PLC more than doubled to P721.9 million from P349 million.
The improving relations with China and possible relaxation of visa requirements is seen to further accelerate the growth of the industry.
“We are hopeful that will significantly improve Chinese tourism into the Philippines and by osmosis, the more tourists from China, the more they will contribute to the growth of integrated resorts,” Mr. Gana said.
Shares in Belle slid two centavos or 0.52% to end at P3.85 apiece, while shares in PLC fell seven centavos or 4.55% to close at P1.47 each on Monday.