Acesite (Phils.) Hotel Corporation has suspended the reconstruction of the Waterfront Manila Hotel & Casino, citing ballooning costs and weak tourism prospects, according to a Thursday filing to the Philippine Stock Exchange.
The property, formerly known as the Manila Pavilion Hotel and referred to in the filing as the Waterfront Manila Pavilion Hotel, is located along United Nations Avenue in Ermita, Manila. It burned down in March 2018 in a fire attributed to faulty electrical wiring, which ignited in the casino’s slot machine area and claimed the lives of six PAGCOR employees.
The company said revised reconstruction estimates have reached PHP3.6 billion ($58.5 million), a marked increase from pre-pandemic projections, as materials and labor costs surged alongside rising fuel prices, pushing the budget ‘way beyond the scope of the insurance collected.’ Structural and civil corrective measures, together with re-layout additions, have driven the budget higher still.
Reconstruction began in 2019 with PHP1.5 billion ($24.4 million) provided by the hotel’s insurance carriers, before slowing as the pandemic progressed.
A phasing plan previously submitted to regulators had targeted a soft opening in 2026. However, management pointed to the local market’s inability to generate sufficient foreign room sales this year, as well as weak indications of a tourism uptick in 2027 amid the ongoing US-Israel-Iran war.
The company also noted that Manila’s gaming market is facing a ‘serious plateau‘ as online gaming expands, while inbound tour operators from China have been reluctant to bring in players who frequented the city during the POGO era, despite a no-visa policy for Chinese tourists.
Management said it will adopt a ‘cautious stance’ toward committing sizeable investments until tourist arrivals stabilize and projected gains in room rates, occupancy, and gaming revenue cover loan repayment and investment returns. The earliest estimate for restarting construction is 2028.
To strengthen its balance sheet, the company has appropriated PHP764 million ($12.4 million) in retained earnings for the reconstruction, and will set an annual maintenance budget to keep the superstructure safe and usable.
