Alliance Global Group Inc. (AGI) disclosed that its subsidiary signed a share purchase agreement to acquire the Genting-held shares in Travellers International Hotel Group Inc. (TIHGI), the company that owns and operates Newport World Resorts in Pasay City, Philippines1. Genting HongKong Ltd. is selling its stake in the integrated entertainment and casino complex, formerly known as Resorts World Manila, to long-time joint venture partner AGI, the group of businessman Andrew Tan1.
The Genting HongKong group owns a 40 percent stake in TIHGI, while AGI holds the remaining 60 percent1. On completion, Genting HongKong will hold no stake in the Philippine entities.
"Upon completion of the transactions, Genting HongKong Ltd. will cease to hold a stake in TIHGI, Westside City Inc. and Adams Properties Inc., AGI said."
TIHGI owns and operates Newport World Resorts, which began operations in 2009 and sits directly across Ninoy Aquino International Airport Terminal 31. The company rebranded Resorts World Manila to Newport World Resorts last year as it expanded the complex with new hotels, gaming spaces, dining and retail establishments1.
The disclosure came alongside first quarter 2023 results for the property. TIHGI revenues rose 63 percent in the period to P7.9 billion as operations normalized to a pre-pandemic state, while gross gaming revenues improved 36 percent year on year and promotional allowance rose 7 percent, producing net gaming revenue growth of 56 percent to P6.1 billion1. Non-gaming core revenues from hotels, food, beverage and other operating income nearly doubled to P1.8 billion from P900 million a year earlier, and hotel occupancy at the five hotels in Newport ranged from 66 percent to 85 percent1. At the AGI level, profit rose 20 percent in the first quarter to P4.7 billion from P3.9 billion a year earlier, on consolidated revenues up 34 percent to P50.3 billion from P37.5 billion1.
| Item | First quarter 2023 | Year earlier |
|---|---|---|
| TIHGI revenues | P7.9 billion | Up 63 percent |
| Net gaming revenue | P6.1 billion | Up 56 percent |
| Non-gaming core revenues | P1.8 billion | P900 million |
| AGI profit | P4.7 billion | P3.9 billion |
| AGI consolidated revenues | P50.3 billion | P37.5 billion |
Source: Manila Standard1
What it means for players
Newport World Resorts is one of the casino complexes serving Metro Manila, and the change is one of corporate ownership rather than of the property itself. The share purchase agreement transfers Genting HongKong's 40 percent interest in TIHGI to an AGI subsidiary, leaving AGI with the whole of TIHGI once the transaction completes1. Nothing in the disclosure describes changes to the casino floor, hotel operations, entry rules or the games offered at Newport, and no such changes have been reported. For locals, expats and visitors who gamble in the Philippines, the practical position described in the disclosure is that the complex continues to operate and continues to report growth in gaming and non-gaming revenue1. General entry and play rules for the country are set out in our guide to gambling in the Philippines, and the wider regional picture is covered in casinos and integrated resorts in Asia.
What happens next
The disclosure does not give a completion date for the share purchase agreement, and no timetable has been reported1. TIHGI earlier announced that it is moving its 2023 annual stockholders meeting, originally scheduled for the second Friday of June, to a later date within the year1.
Sources1 sources
- Genting exiting Newport World Resorts - Manila Standard, manilastandard.net
