Acesite (Phils.) Hotel Corporation said only minimal work had resumed on the reconstruction of the Waterfront Manila Hotel and Casino before the company’s latest decision to suspend the project, according to a June 25th reply to the Philippine Stock Exchange.
The clarification follows Acesite’s earlier disclosure this month that it had suspended the reconstruction due to rising costs and weak market conditions. The property, formerly known as Manila Pavilion, was affected by a fire incident in 2018.
‘While initial recovery efforts were initiated, reconstruction works were suspended during the COVID-19 pandemic. To date, only minimal work has resumed,’ Acesite said in its reply.
The company said a comprehensive project review placed the updated estimated budget to complete the restoration of the hotel, including the casino areas, at about PHP3.6 billion ($58.5 million).
Acesite said the adjustment was mainly due to higher labor and construction material costs caused by inflationary pressures. It also cited additional structural and civil works, including reinforcements to strengthen the building’s foundation, columns and beams.
The plan also includes a re-layout of public areas, kitchens and storage spaces to improve future operational efficiency and space utilization.
To preserve liquidity, Acesite said it has postponed all construction-related cash outflows until 2028, while also planning to use retained earnings, intercompany borrowings and bank financing for the eventual restart.
