BusinessNews

Travellers International Posts PhP33.4B Revenues in 2013

Manila—(PHStocks)—Travellers International Hotel Group Inc. (PSE: RWM) has achieved record gross revenues of PhP33.4 billion in 2013, with gross gaming revenues contributed PhP30 billion of 2013 revenues.

In the first quarter of 2014, gross gaming revenue reached PhP7.2 billion. The growth in the gaming revenues was driven by a robust increase in volume from the VIP segment and an equally strong mass segment volume growth.

Hotel, food, beverage, and other revenues contributed to PhP2.5 billion in 2013 and PhP791.1 million in the first quarter 2014. The three hotels, Maxims, Remington and Marriott, which cater to a broad segment of customer base, are experiencing all-time high occupancy rates.

The Company embarked on initiatives that leveraged on these learnings, and allowed them to manage their direct costs and general and administrative expenses better, thereby ensuring quality earnings for the shareholders.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter 2014 has reached PhP2.6 billion, while it was PhP6.7 billion for the full year 2013.

Net profit for the first quarter of 2014 is almost PhP1 billion, up 72.7% over the same period in 2013, and which is already at 62.7% of the full year 2013 net profit of PhP2.7 billion.

TIHGI ended 2013 in a net cash position of PhP8.1 billion which will enable it to fast track the Phase 2 and Phase 3 projects that it has embarked on providing a glimpse of what to expect for the expanded hotel, retail, and gaming facilities.

Phase 2 involves the expansion of the existing Marriott Hotel Manila with the Marriott Grand Ballroom as well as the additional rooms through the Marriott West Wing which will add 227 room keys. Marriott Grand Ballroom is expected to be fully operational by the 1st quarter of 2015 while the Marriott West Wing will be operational by the end of 2015.

Phase 3 will comprise two new hotels – the Hilton Manila and the Sheraton Hotel Manila, as well as an extension of Maxims Hotel, which will contribute another 877 room keys in the property. Phase 3 shall also include a new gaming area, additional retail space and six basement parking decks. Completion for the entire project is by 2017.

The Company is allotting up to PhP9 billion in 2014 for capex for said projects in 2014 alone.

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