Travelers International Hotel Group Inc.the entity behind Resorts World Manilarecently renamed to Newport World Resorts, released its second quarter financial results. The operator’s performance metrics were included in an earnings call by one of its shareholders, the holding company Alliance Global Group Inc. (AGI). Travelers International’s results were generally positive, continuing its recovery from the COVID-19 pandemic.
AGI is confident in the success of Newport World
According to AGI’s listing, the integrated resort company recorded an impressive 143% increase year over year gross gaming revenue, reaching $263 million (14.7 billion Php). The sum is also a increase of 25% compared to Q1 2022, indicating stable growth and outlook.
Alliance Global seems to share this sentiment as it increased its stake in Travelers International to 60%, up ten percentage points from the start of the year. AGI’s entertainment and leisure investments were responsible for the holding company’s profits.
The strong interim performance reflects the quarterly uptick in economic activity, helped by pent-up consumer spending as mobility continues to improve.
Kevin L. Tan, CEO of AGI
According to a recent press release, AGI is confident of continued growth. The Company’s properties continue to face challenges related to increasing global instability. CEO Kevin Tan said Alliance Global has the strategy, the offerings and a strong market position to continue its recovery.
Easing of COVID restrictions helped boost visitor numbers
The impressive growth of Travelers International can be attributed to the confidence of its shareholders. Earlier this year, AGI said it would invest $75 million in Newport World Resorts, focusing on several expansion projects.
These efforts appear to be paying off, with net gaming revenue reaching $172 million (Php9.6 billion) for the first half of the year, marking a 87% increase compared to H1 2021 and a 44% increase compared to Q1 this year.
The government’s relaxation of anti-pandemic measures has been a significant factor in the company’s growth, as more relaxed mobility and travel restrictions have led to a substantial increase in foot traffic and foreign tourist arrivals. Since March 1, authorities have placed Metro Manila under “alert level 1”, allowing businesses to operate at full capacity. The hotel occupancy rate increased by approximately ten% compared to 2021, improving non-gaming revenue from 25% at $41 million (2.3 billion Php).
Alliance Global recognized the positive signs and increased promotional allowances in 83% compared to last year. These continued investments will be crucial for the sprawling integrated resort, which houses seven hotels and 323,000 square feet of playing space and depends on maintaining a significant number of visitors.