Suntrust gets 20% stake in $1-B Westside casino resort
Listed casino developer Suntrust Resort Holdings Inc. has taken a step back from the development of the long-delayed integrated resort project in Entertainment City, instead handing back the reins to tycoon Andrew Tan.
In a regulatory filing on Monday, Suntrust said its board of directors had approved plans to “pursue a strategic working agreement” with Travellers International Hotel Group Inc., Westside City Inc., Westside Bayshore Holding Corp. and Entertainment City Resorts Corp. (ECRC) to “expedite the completion” of the $1.25-billion Westside integrated resort.
According to Suntrust, it will have a 20-percent ownership in ECRC, which will “assume all rights and obligations related to the project.”
Inside Asian Gaming Magazine earlier reported that Travellers is set to take a majority stake in ECRC as part of plans to ensure the completion of the project.
The Westside project will consist of a five-star hotel, casino, mall and theater complex.
Suntrust confirmed in June that the opening of the main hotel casino was again delayed to the third quarter of 2026 from its previous estimate of December 2025, as the company was still reviewing plans and “actual construction status.”
This represents a four-year delay from its original 2022 opening target.
Once operational, it will be the fourth casino hotel within Entertainment City, alongside Solaire Resort and Casino, City of Dreams Manila and Okada Manila.
It is expected to have 475 luxury hotel rooms and suites, 1,000-seat and 800-seat theaters, along with 1,126 slot machines, 281 gaming tables and 134 electronic table games.
Suntrust in April issued P8.63 billion in new convertible bonds to a subsidiary of affiliate Summit Ascent Holdings Ltd. Should all bonds be converted into equity, the LET Group, which is the controlling shareholder of Summit Ascent, will increase its interest in Suntrust to as much as 89.8 percent from 51 percent.
In June last year, Suntrust announced it would get a $17-million loan from LET Group to bankroll the development of Westside City.
This is in addition to a $38-million loan Suntrust secured from the group in April 2024.
This new development comes despite a challenging environment for brick-and-mortar casino operators, as lower foreign tourist arrivals and strict visa policies made a dent in earnings from the VIP segment.
Still, Unicapital Securities Inc. earlier noted there was a slow recovery in tourist arrivals, adding that this could provide a much-needed boost for casino operators.
Suntrust slashed its net loss in the January to June period by 84 percent to P131.32 million due to foreign exchange gains.
