Suntrust: Opening of Manila’s fourth IR pushed back again, to late 2025
Suntrust Resort Holdings, the Philippine-listed unit of Hong Kong’s LET Group Holdings, says it will open Westside City in the fourth quarter of 2025. In the works since 2019, the complex was initially slated to open in 2022 but has been delayed numerous times.
The $1.1 billion (£834 million/€969 million) project spans 31 hectares (310,000 square metres) along Manila Bay. Westside City will feature a 475-key five-star hotel, spa and wellness centre, 500-person capacity ballroom, 3,000-seat performance hall and ample meeting and convention space.
The gaming floor will offer 281 tables, 134 EGMs and more than 1,100 slot machines serving both mass and VIP players.
IR has built-in competition
In its 2024 annual report, Suntrust listed a number of caveats that could affect Westside City and its future performance.
They include “adverse conditions in the business environment [and] economy”; “shortages in the supply and increases in the prices of construction materials”; and potential “difficulties” in securing government approvals, including licensing.
It noted that the demand for luxury services and gaming are “sensitive to global economic downturn” and the resort will face “intense competition” right outside its door. Westside City will be the fourth integrated resort in Manila’s Entertainment City casino zone. The district is already home to Okada Manila, City of Dreams Manila and Solaire Resort.
All are located in Parañaque City, Metro Manila, about a 10-minute drive from Ninoy Aquino Airport.
Suntrust also noted the proliferation of other casino complexes “elsewhere in Asia”. Integrated resorts (IRs) with gaming will open in the United Arab Emirates and Japan in 2027 and 2030, respectively. Thailand is weighing entry into the gaming business in a bid to bolster tourism and investment.
Those “competitive pressures” are already having an effect in Entertainment City. Melco Resorts & Entertainment is looking to divest of City of Dreams Manila to support an IR bid in Thailand.
Development work continues
For all its disclaimers, Suntrust also disclosed that structural work on the project is nearly complete.
“The mechanical, electrical and plumbing and fire protection systems in major plantrooms have been substantially completed,” the company stated. “And part of the system has commenced testing and commissioning.
“Architectural builders and fit-out works and external civil works are in progress. Management aims to commence the operations of a five-star hotel and casino establishment in the fourth quarter of 2025.” Landscaping is under way on the grounds.
In a $5.3 million deal announced last October, Suntrust also engaged IGT to provide its casino management sytsem.
Years of financial turmoil
LET, formerly Suncity Group, has undergone plenty of upheaval in recent years. In 2023, founder and Macau junket kingpin Alvin Chau was convicted of organised crime and illegal gambling and sentenced to 18 years in prison. Shortly thereafter, the parent company changed its name from Suncity to LET (Leisure Entertainment Taste).
In January 2024, LET attempted to sell its stake in Tigre de Cristal, a casino resort in Russia’s Primorye region, which has been hit hard by the Ukraine war. That plan caused an exodus of board members and a trading suspension on the Hong Kong Exchange. Trading has yet to resume and LET still faces the chance of delisting.
According to Macau Business, the company expects a loss of $27.71 million for 2024, versus a profit of $7.5 million for 2023. It attributes the loss to the cost of development in Parañaque.
However, in a recent dispatch, chairman Andrew Lo sounded resolute. “The group remains committed to ensuring compliance and demonstrating suitability for continued listing as it navigates the challenges posed by market conditions and regulatory expectations,” he said.