AGI Explores Expansion Opportunities Beyond Metro Manila

Alliance Global Group Inc. (AGI), the well-known conglomerate headed by billionaire Andrew Tan, has revealed plans to expand its casino operations beyond Metro Manila. Genting Hong Kong has officially exited the picture after successfully reclaiming control of its gaming business, Travellers International Hotel Group.

With the easing of COVID-19 restrictions, Travellers International Hotel Group has already witnessed a significant financial turnaround in 2022. AGI CEO Kevin Tan expressed his optimism, stating that “Travellers, operator of Newport World Resorts (formerly Resorts World Manila), is poised to explore new locations outside the Philippine capital.” During the company’s annual shareholders’ meeting, Tan further emphasized their expansion plans, revealing, “As for expansion outside Metro Manila, we are actively scouting key tourism hubs across the Philippines as potential sites for our integrated resort business.”

AGI recently made a smart move to repurchase a 40% interest in Genting Hong Kong, which is controlled by Genting Group founder Lim Kok Thay of Malaysia and threatened bankruptcy last year. With this transaction, AGI will restore complete control of Travellers.

Travellers also possesses a gaming license for the building of an integrated casino project within the Entertainment City complex along Manila Bay, in addition to Newport World Resorts. Furthermore, three years ago, Travellers agreed to a $2 billion casino project with Suntrust Resorts Holdings Inc., which is owned by Hong Kong-listed LET Group Holdings (formerly Suncity Group Holdings).

While prospects in the gaming and hotel sectors were severely impacted by the pandemic, Tan expressed his confidence in their recovery, stating, “We intend to sustain this strong growth trajectory.”

AGI also intends to grow its footprint in other segments, with a capital spending goal of P70 billion for 2023, a 23% increase over the previous year. Kevin Tan stated, “AGI has been focused on delivering products and services that create a bespoke and premium lifestyle for our discerning customers. A firm believer of the country’s attractive long-term growth prospects, the Group is betting on the continued improvement in consumer spending.”

In terms of revenue, AGI recorded a strong first quarter of 2023, with a net profit of P4.7 billion, a significant 20% rise over the same period last year. Profits increased by 34% from January to March, hitting P50.3 billion.

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