Analysts at Morgan Stanley Asia predict the IR could generate PHP1.7bn (US$31.2m) in EBITDA in 2024.
The Philippines.- The opening of Bloomberry Resorts’ new integrated resort (IR), Solaire Resort North, in Quezon City, Philippines has been delayed. Analysts at Morgan Stanley Asia report that the opening, originally scheduled for the first quarter of 2024, has been rescheduled to the second quarter.
The bank’s analysts, Gareth Leung and Praveen Choudhary, anticipate that the IR will generate PHP1.7bn (US$31.2m) in EBITDA during 2024, constituting 8 per cent of Solaire Resort and Casino’s total.
The development will have a hotel, gaming, restaurants and bars, meeting facilities and retail spaces like Solaire Resort & Casino in Entertainment City. Paranaque. The project was previously delayed due to the pandemic, exacerbated by disruptions in the global supply chain.
During Morgan Stanley’s ‘Virtual ASEAN Conference 2023’, Bloomberry management said the budget for Solaire Resort North amounts to PHP50bn. The financing of the project involves 80 per cent debt and 20 per cent equity.
Despite the delay in Solaire Resort North’s opening, Morgan Stanley expects Bloomberry to report a company-wide EBITDA of PHP5.2bn for the three months ending June 30. This estimate reflects a decrease of approximately 10 per cent compared to the previous quarter.
According to the bank’s assessment, Bloomberry Resorts will allocate PHP20bn in capital expenditure for Solaire Resort North in 2023. Total capital expenditure by the end of the same year is projected to reach PHP40bn.
For the first quarter of the year, Bloomberry reported gross gaming revenue (GGR) at Solaire Resort and Casino of PHP16bn (US$287m), up 80 per cent year-on-year. Compared to the fourth quarter of 2022, GGR improved by 9 per cent.