Hong Kong-listed International Entertainment Corp (IEC) has engaged a contractor to begin expansion and redevelopment works – including a significant increase to gaming capacity – at its Manila hotel and casino, New Coast Hotel.
According to a Hong Kong Stock Exchange filing, IEC’s wholly-owned subsidiary New Coast Leisure Inc has signed a Construction Contract with local firm Kimberland Construction Inc to the tune of Php1.47 billion (US$25.5 million) under which the contractor will undertake design, demolition, construction, furnishing and retrofitting of parts of the property. It will also ensure electricity systems, plumbing systems and fire-protection systems are in place.
While the Construction Contract represents only a fraction of the US$1 billion IEC has committed to invest to transform the hotel and former PAGCOR-operated casino into a world-class integrated resort, it does include the creation of additional gaming space on the ground floor of the casino with the maximum number of gaming tables to increase from 80 currently to more than 110 and the maximum number of slot machines from 500 to over 920.
“The company is optimistic that the enlargement in gaming capacity of the casino will improve the future revenue of the casino,” IEC said.
The investment comes after IEC was in 2023 granted a provisional license by PAGCOR to develop and assume control of the casino. The company had initially entered into a partnership with the regulator under which it aimed to enhance its knowledge of casino operations. IEC assumed full control of the casino floor from PAGCOR in May 2024.
In outlining the reasons for this initial Construction Contract, IEC said, “To undertake the casino and gaming operations, the group has planned to carry out a series of renovation work at the hotel with a view to maintaining the hotel in good service and condition, and upgrading infrastructures and facilities of the hotel to complement the operation of the casino.
“The Board considers that the implementation of the construction works will improve the appearance and condition of hotel facilities, modernize outdated amenities, enhance overall quality of the hotel and promote premium customers experiences at both the casino and hotel.
“In the long-term [the company aims to increase] occupancy rates of the hotel and attract spending activities from visitors at the casino and hotel.”
IEC will, under the Construction Contract, pay 40% of the total US$25.5 million cost up front, 55% as a regular progress payment in instalments and 5% as retention money after the expiration of a defects liability period.
