Travellers International Hotel Group Inc, the entity behind Resorts World Manila, recently renamed to Newport World Resorts, revealed its second quarter financial results. The operator’s performance metrics were included in an earnings call by one of its shareholders, holding company Alliance Global Group Inc. (AGI). Travellers International’s results were overall positive, continuing its recovery from the COVID-19 pandemic.
AGI Is Confident in Newport World’s Success
According to AGI’s listing, the integrated resort company recorded an impressive 143% year-to-year rise in gross gaming revenue, reaching $263 million (Php14.7 billion). The sum is also an increase of 25% compared to Q1 2022, indicating stable growth and prospects.
Alliance Global appears to share this sentiment, as it increased its stake in Travellers International to 60%, up by ten percentage points compared to the start of the year. AGI’s entertainment and leisure investments were responsible for the holding’s profits.
Strong interim performance mirrors the quarterly rise in economic activity, helped by pent-up consumer spending as mobility continues to improve.Kevin L. Tan, AGI chief executive officer
According to a recent press release, AGI is confident in sustaining its growth. The company’s properties continue to face challenges relating to the increased global instability. CEO Kevin Tan stated that Alliance Global had the strategy, offerings, and strong market position to continue its recovery.
Loosening COVID Restrictions Helped Increase Visitors
Travellers International’s impressive growth can be attributed to the confidence of its shareholders. Earlier this year, AGI stated that it would invest $75 million into Newport World Resorts, focusing on several expansion projects.
These efforts seem to be paying off, as net gaming revenue reached $172 million (Php9.6 billion) for the first half of the year, marking an 87% increase compared to H1 2021 and a 44% rise compared to Q1 of this year.
The government’s loosening of the anti-pandemic measures was a significant factor in the company’s growth, as the more relaxed mobility and travel restrictions resulted in substantially increased foot traffic and foreign tourist arrivals. Since 1 March, the authorities placed Metro Manila under “Alert Level 1,” allowing businesses to operate at capacity. Hotel occupancy rates increased by approximately 10% compared to 2021, improving non-gaming revenues by 25% to $41 million (Php2.3 billion).
Alliance Global recognized the positive signs and increased promotional allowances by 83% compared to last year. Such continued investments will be crucial for the massive integrated resort, which hosts seven hotels and 323,000 sq ft of gaming space and depends on maintaining significant visitor numbers.