Solaire North IR to reach EBITDA breakeven by Q3, analysts say
Analysts at Morgan Stanley Asia say the integrated resort could generate PHP800m (US$13.7m) in positive EBITDA this year.
The Philippines.- A report by Morgan Stanley Asia has indicated that Solaire Resort North, an integrated resort (IR) opened by Bloomberry Resorts in Quezon City, could break even on earnings before interest, taxation, depreciation, and amortization (EBITDA) by the third quarter. They said the IR is projected to generate PHP800m (US$13.7m) in EBITDA this year and PHP9.1bn in 2025.
The US$1bn development, launched on May 25, features 526 rooms and suites. The casino has 2,669 electronic gaming machines and 163 tables across four levels. Its proximity to the Entertainment City casino zone in Manila has sparked concerns about potential cannibalisation. However, Morgan Stanley suggests Bloomberry Resorts may benefit from the shift in market dynamics at the expense of other operators in Entertainment City.
They say between 18 per cent and 34 per cent of Entertainment City’s EBITDA could be eroded with City of Dreams Manila and Okada Manila possibly the most affected IRs. Clark would also be a “feeder market” for Solaire Resort North.
Morgan Stanley noted that Solaire Resort North is expected to introduce more offerings via its VIP floor in July and new food and drink facilities in September.
In April, Bloomberry chairman and CEO Enrique K. Razon Junior said he expected the IR to achieve full operational capacity by 2026.
