Genting ...Dec12

Genting Hong Kong Ltd, an 18.4% unit of Genting Malaysia Bhd, will start physical works soon on phase one of its US$1.1bil (RM3.41bil) Resorts World Bayshore, a project that is set to be three times the size of the existing Resorts World Manila. It is understood that construction is scheduled to begin 2013 with a target to finish the first phase by 2016 involving 16ha and an initial US$550mil (RM1.7bil) investment.

When completed, Resorts World Bayshore will hold two upscale hotels with 800 rooms, a grand opera that seats 3,000, a mall, and residential towers centred around a casino that is two times larger than Resorts World Manila's. Both integrated resorts are 20 minutes apart.

Resorts World Bayshore forms part of an ambitious push by the Philippines government and spearheaded by its Philippines Amusement and Gaming Corp to build a 100ha gambling and leisure haven to rival Macau and Las Vegas , dubbed Entertainment City . The development will take up eight sq km of reclaimed land on Manila Bay .

Genting HK, which the Lim family has a 55.3 per cent stake in it, operates its cruise business via two entities, namely Star Cruises-Asia Pacific (Star Asia) and Norwegian Cruise Lines (NCL). It has a 50 per cent joint ownership alongside Apollo and TPG.

It currently (Nov 2012) has a combined fleet of 18 ships cruising to over 200 destination, offering approximately 35,000 lower berths. The plan is to add on a new ship every year. By 2016, expected to have 22 ships.

In 2011, Star Asia's net income rose 76 per cent to US$57.9 million (RM177.7 million), while NCL posted a net income of US$126.9 million and adjusted earnings before interest, tax, depreciation and amortisation of US$506 million versus US$23 million and US$405 million respectively, a year ago.

The performance is not a "one-hit wonder", as its fleet of ships are registering very good occupancy rate. Some of its ships are even registering over 100 per cent occupancy rate. Besides its cruise business, the company's casino project in Manila is also showing good growth signs.

Genting HK has a 50 per cent stake in Travellers International Hotel Group Inc, which owns and managers Resorts World Manila. The other 50 per cent is owned by the Philippines conglomerate Alliance Global Group Inc.

By the time the third phase expansion is completed in 2016, Resorts World Manila is expected to house five hotel chains, a convention centre, as well as larger retail and gaming spaces.

It currently has three hotel chains, a casino, a retail mall among others.
Genting HK and Alliance Global is also investing another US$1.2 billion to build another casino project in Manila - dubbed Resorts World Bayshore.