PH Resorts Group finds new hope for Emerald Bay Casino completion

Jenny Ortiz December 9, 2024

SiGMA news

Philippine-based businessman Dennis Uy’s PH Resorts Group Holdings Inc. (PHR) has partnered with Yuchengco-led EEI Corporation to revive the long-delayed Emerald Bay Resort and Casino project in Mactan, Cebu. In its Philippine Stock Exchange (PSE) disclosure on Monday, the development was announced after PHR’s parent company, Udenna Corporation, signed a Memorandum of Understanding (MOU) with EEI.

Under the agreement, EEI will finance, construct, and complete the $300-million integrated resort (IR), contingent on the execution of definitive agreements and regulatory approvals. This marks a critical step for the project, which began construction in 2017 but has faced repeated setbacks.

History of stalled progress

The Emerald Bay project envisioned as Cebu’s second integrated resort, has struggled to maintain momentum since its inception. The COVID-19 pandemic compounded financing challenges, leading to a halt in development. Earlier attempts to secure partnerships with prominent firms, including Bloomberry Resorts Corporation, AppleOne Properties, and Tiger Resort Leisure and Entertainment Inc. (TRLEI), all fell through after due diligence processes.

Despite these hurdles, the project holds considerable promise. Plans include two 15-storey hotel towers offering 642 rooms, a large-scale gaming floor with over 700 electronic gaming machines and 140 tables, extensive dining and retail facilities, and spaces for conferences and exhibitions.

What EEI brings to the table

EEI’s involvement could be a turning point. As one of the Philippines’ leading construction firms, its expertise and resources might finally push the Emerald Bay project toward completion. The specifics of what EEI will receive in return remain unclear, but the agreement signals renewed confidence in the resort’s viability.

PHR’s disclosure indicates that subsidiaries Lapulapu Leisure Inc. and Lapulapu Land Corp. will also play key roles in the partnership. The company has promised further details once the definitive terms are finalised.

The stakes for PH Resorts

For Dennis Uy, this partnership represents another opportunity to stabilise his cash-strapped PHR, which has faced mounting debt pressures in recent years. Emerald Bay is seen as a pivotal venture for Uy’s gaming and hospitality portfolio, with its success potentially reversing the group’s financial fortunes.

However, the challenges are far from over. Regulatory approvals and other conditions precedent must still be met before construction can resume. The project’s future hinges on the seamless execution of these agreements and the ability of all stakeholders to align their objectives.

Potential impact for Cebu

If completed, Emerald Bay could enhance Cebu’s reputation as a premier gaming and leisure destination, rivalling established resorts in Metro Manila and other Southeast Asian locales. For now, the partnership with EEI represents a cautious but hopeful step forward in an otherwise turbulent journey for Dennis Uy and PH Resorts Group.

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