Suntrust gets additional over €15?million loan for Westside City hotel project?

Jenny Ortiz June 21, 2024

Share it :

Suntrust gets additional over €15?million loan for Westside City hotel project?

Suntrust Resort Holdings Inc., listed on the Philippine Stock Exchange, has secured an additional $17 million (€15.87 million) loan from its parent company, Hong Kong-listed LET Group Holdings Ltd. This loan aims to support the ongoing development of Suntrust’s major project, a $1 billion (€934 million) casino hotel in Para?aque City’s Entertainment City.

The loan agreement, approved by Suntrust’s board of directors, stipulates a repayment period of ten years and is expected to positively impact the company’s business operations and financial condition.

Project details and development timeline?

The forthcoming casino hotel, named Westside City Hotel, is set to become the fourth casino facility in Entertainment City, following Solaire Resort and Casino, City of Dreams Manila, and Okada Manila. Suntrust anticipates the hotel’s opening in early 2025. Westside City Hotel will feature 475 luxury hotel rooms, two theatres with seating capacities of 1,000 and 800, respectively, and extensive gaming facilities, including 1,126 slot machines, 281 gaming tables, and 134 electronic table games.

Suntrust’s project is part of a larger development within Entertainment City, an area known for its cluster of integrated casino resorts. The development also includes amenities such as a pool deck, spa, wellness centre, ballroom, multiple theatres including a grand opera house, a food mall, and four cinemas, aiming to attract a diverse clientele.

Financial backing and strategic partnerships?

This new loan complements a $38 million (€35.4 million) loan from LET Group secured in April, also designated for the Westside City Hotel project. Additionally, Suntrust previously engaged in a PHP25 billion (€396.77 million) loan agreement with China Banking Corp., led by the Sy family, and a $6 million (€5.6 million) deal with Major Success Group Ltd., another entity under LET Group. These financial arrangements are pivotal in ensuring the completion and success of the Westside City Hotel.

In 2020, Suntrust partnered with Megawide Construction Corp., owned by tycoon Edgar Saavedra, to co-develop the Westside City project, further bolstering its development capabilities.

Market position and industry context?

Suntrust’s Westside City Hotel will join the ranks of established casinos in Entertainment City, enhancing Manila’s reputation as a significant gaming and entertainment hub. The company reported a net loss of PHP246.13 million (€3.9 million) in the first quarter of this year, a notable shift from a net profit of PHP92.84 million (€1.47 million) in the same period last year, primarily due to increased expenses.

Despite recent challenges in the regulated gaming and gambling sector, including issues related to illegal POGOs (Philippine Offshore Gaming Operators) and cybercrimes, the industry remains resilient. The launch of new projects like Solaire North in Quezon City, inaugurated by President Ferdinand Marcos Jr., underscores ongoing investments and confidence in the sector’s growth prospects.

The Westside City Hotel project not only signifies Suntrust’s strategic expansion but also reflects broader trends of robust investment and development within the Philippines’ gaming and entertainment industry.?

SiGMA East Europe Summit

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming SiGMA East Europe Summit happening in Budapest from 2 – 4 September.