Troubled Tides for the Emerald Bay Casino Resort
Casino's Future at Risk: Possible Land Sale Threatens Emerald Bay Casino's Existence
In a twist of fate, the future of the stalled Emerald Bay casino resort in Mactan, Cebu hangs in the balance as its lender, China Banking Corp., plans to sell the land, casting a shadow over the project's prospects.
A Long Road of Hurdles
PH Resorts Group, spearheaded by Dennis Uy, has faced a plethora of challenges in their mission to complete the Emerald Bay casino resort. The PHP17.5 billion ($314 million) project has been burdened by financial woes and collapsed partnerships.
Failed Partnerships and Investor Searches
PH Resorts made multiple attempts to secure investors, engaging in talks with Tiger Resort Leisure & Entertainment Inc., Bloomberry Resorts, and AppleOne Group. However, these potential deals fell through, leaving the project in a precarious position.
A Faint Beacon of Hope
In December, a glimmer of hope surfaced with a memorandum of understanding between PH Resorts and construction firm EEI Corp. EEI Corp. invested PHP300 million towards lease and interest payments to China Banking Corp., the primary lender. Furthermore, Udenna Corp., PHR's parent company, pledged continued support to repay debts to former partner Bloomberry.
Chinabank's Decision to Part Ways
Despite recent discussions between PHR and EEI Corp, Chinabank has decided to part ways, announcing intentions to sell the 30-acre beachfront property. Chinabank Chairman Hans Sy speculated that "a couple of interested parties" are considering the land; however, potential buyers have yet to be revealed.
The Emerald Bay: A Casualty of the Pandemic
Once envisioned as "an unparalleled luxury leisure experience," the Emerald Bay project boasted a five-star hotel, swimming pools, dining options, and extensive gaming facilities. It was set to join Cebu's growing roster of casino resorts, including Nustar and Mactan World.
Construction commenced in 2017 with an expected 2021 opening. The COVID-19 pandemic, however, brought everything to a standstill, and work has yet to resume.
A Final Decision: The End of the Road?
With the leaseback agreement's expiration, Chinabank decided to sell the property. Hans Sy elaborated, "We gave Dennis a chance to redeem. Of course, they asked for an extension. But we already gave them more than a year. It's already in our name. ... We're not renewing anymore."
The sale of the Emerald Bay land raises intriguing questions regarding the future of this ambitious casino resort project and its implications on Cebu's burgeoning gaming market.
- The stalled Emerald Bay casino resort, a project worth PHP17.5 billion, faces an uncertain future as China Banking Corp plans to sell the land, potentially marking the end of the ambitious resort.
- PH Resorts Group, led by Dennis Uy, has been navigating various challenges in their quest to complete the Emerald Bay casino resort, including financial struggles and failed partnerships with Tiger Resort Leisure & Entertainment Inc., Bloomberry Resorts, and AppleOne Group.
- In an effort to alleviate the financial burden, PH Resorts secured an investment of PHP300 million from construction firm EEI Corp for lease and interest payments to China Banking Corp, and Udenna Corp pledged continued support to repay debts to Bloomberry.
- Despite these recent investments, China Banking Corp has announced intentions to sell the 30-acre beachfront property, with chairman Hans Sy speculating that "a couple of interested parties" are considering the land.
- The Emerald Bay was initially envisioned as an unparalleled luxury leisure experience, complete with a five-star hotel, swimming pools, dining options, and casino-and-gambling facilities, aiming to join Cebu's growing roster of casino resorts.
- With the leaseback agreement's expiration, and the subsequent decision to sell the property, the future of the Emerald Bay project, as well as its impact on Cebu's burgeoning gaming market, remains uncertain. This development presents intriguing questions within the finance, real-estate, and casino-culture industries, specifically concerning the involvement of casino personalities and the fate of similar endeavors.