A plan to complete the redevelopment of Waterfront Manila Hotel & Casino and stage a phased opening from this year has been placed on indefinite hold, with operator Acesite (Phils) Hotel Corporation citing higher costs and a depressed Philippines gaming market due to the Middle East conflict, growth in online gaming and fewer visitor arrivals from China.
Acesite, of which Waterfront Philippines Inc holds a controlling 55.7% stake, had previously announced that a phased reopening would take place from 1Q26 with full opening scheduled for early 2027.
Waterfront Manila Hotel & Casino, formerly Manila Pavilion Hotel, burnt down in March 2018 in a fire said to be caused by faulty electrical wiring. Six PAGCOR employees tragically lost their lives in the blaze, which ignited in the slot machine area of the casino.
In a Thursday filing, Acesite said it is now revisiting the business prospects of reopening the hotel because redevelopment costs – initially covered by Php1.5 billion in funds provided by insurers – had blown out to an estimated Php3.6 billion. The company explained that this was due to materials and labor having become drastically more expensive. Spiraling fuel costs in the wake of the ongoing Middle East conflict had subsequently pushed the budget “way beyond the scope of the insurance collected,” it added.
On the current state of Manila’s tourism industry Acesite said, “The inability of the local market to generate sufficient foreign room sales in 2026, as well as the weak indications of an uptick in tourism arrivals projected for 2027 due to the on-going protracted US-Israel-Iran war, are issues that need serious attention.
“Moreover, the gaming market in Manila is facing a serious plateau as the advent of online gaming is becoming evident. Despite a no-visa policy for Chinese tourists, inbound tour operators from China have been reluctant to bring in the players that frequented the city when POGO operations were previously allowed.
“These considerations have prompted management to reconsider the pouring in of additional considerable sums to reopen the hotel at this point in time. Until such time that the industry indicators on visiting tourist arrivals will have stabilized, management elects to adopt a cautious stance towards the commitment of sizeable investments needed for rebuilding the hotel. Only at such time when the projected marginal increases in average room rate, room occupancy and gaming revenues will be evident to cover for loan repayment and investment return, will the construction of the Waterfront Manila Pavilion Hotel restart.”
According to Acesite, construction is unlikely to resume until at least 2028, with an annual maintenance budget assigned in the meantime to ensure the hotel superstructure remains in a safe and usable condition.
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