Acesite (Phils) Hotel Corporation said Friday it is no closer to resuming the redevelopment of Waterfront Manila Hotel & Casino after pausing construction earlier this year, focusing instead of “appropriate maintenance activities” to keep the superstructure in good condition.
The company said in reply to an inquiry from the Philippine Strock Exchange that, having initially slated Phase 1 of the redevelopment for completion in 2026 and Phase 2 in 2027, several intervening events such as “the weak Chinese gaming market, the rising popularity of online gaming vis-à-vis land-based casinos and the high oil prices from the Iranian war” have made it prudent to pause the reconstruction activities until such time that the capital expense becomes justifiable with improved tourist arrivals and a more agreeable business climate.”
Acesite continues to forecast a resumption in 2028, adding, “until such time, management intends to continue appropriate maintenance activities to keep the hotel superstructure in good physical condition.”
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.
Acesite first revealed in June that it was revisiting the business prospects of reopening the hotel because redevelopment costs – initially covered by Php1.5 billion (US$23.9 million) in funds provided by insurers – had blown out to an estimated Php3.6 billion (US$57.4 million). The company explained that this was due to materials and labor having become drastically more expensive, pushing the budget “way beyond the scope of the insurance collected.”
Acesite counts Waterfront Philippines Inc as its controlling shareholder with a 55.7% stake.
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