| Updated:2024-04-17 16:36 Views:174 |
On June 15, Alliance Global Group Inc. (AGI), the Philippines-based conglomerate owned by billionaire Andrew Tan, has revealed that it will consider plans to extend its casino operations outside Metro Manila. The decision comes after the company regained control of its gaming subsidiary, Travellers International Hotel Group, when Genting Hong Kong officially exited.
Researching potential locations for expansion:
Following the easing of COVID 19 limitations, Travellers International Hotel Group has already experienced a financial turnaround during 2022. On that note, AGI CEO Kevin Tan noted that “Travellers, operator of Newport World Resorts (formerly Resorts World Manila), is ready to explore new locations outside the Philippine capital.”
Also, throughout the company’s yearly shareholders’ meeting on Thursday, he said: “As for expansion outside Metro Manila, we are actively looking at some of the key tourism hubs all over the Philippines as potential expansion sites for our integrated resort business.”
Returning control of the subsidiary:
Over the past week, AGI said: “We would buy a 40-percent stake held by cruise ship giant Genting Hong Kong, controlled by Genting Group patriarch Lim Kok Thay of Malaysia, which filed for bankruptcy last year.” In addition, this will allow the company to regain full control of Travellers.
Furthermore, in addition to Newport World Resorts, Travellers holds the gaming license to develop an integrated casino project at the Entertainment City complex along Manila Bay. Additionally, three years ago, it signed an agreement with Suntrust Resorts Holdings Inc., owned by Hong Kong-listed LET Group Holdings (previously Suncity Group Holdings), to construct a $2 billion dollars casino project.
In the meantime, Tan said that “prospects in gaming and hotels—among the hardest hit segments during the pandemic—were on the mend. We intend to sustain this strong growth trajectory.”
Expansion in other segments:
The company also plans to extend in its other segments through a capital spending budget of P70 billion for 2023, up 23% from 2022. In this regard, Kevin Tan said: “AGI has been focused on delivering products and services that create a bespoke and premium lifestyle for our discerning customers. A firm believer of the country’s attractive long-term growth prospects, the Group is betting on the continued improvement in consumer spending.”
On the revenue side, AGI ended the first quarter of 2023 strong, with net profit of P4.7 billion, up 20% over the same period during previous year. However, profits from January to March also grew 34% to P50.3 billion.
About:
Headquartered in the Philippines, AGI is the official owner of Megaworld Corp., Emperador Inc., Travellers, and Golden Arches Development Corp., which manages the McDonald’s fast food chain in the Philippines.
