Suntrust Transfers Management and Construction of Casino in Manila

As the Philippine market awaited new signals regarding the future of the country’s most ambitious integrated resort, Suntrust Resort Holdings unexpectedly announced a strategic agreement with Travellers International and a number of affiliated entities.

At the center of attention was the grand LETX project, valued at $1.25 billion and aiming to become a new symbol of Manila. The decision to transfer management and complete construction became one of the most talked-about events in the regional entertainment market. The main question is who will now determine the future of the largest entertainment cluster in the Philippines and how this will affect the opening timeline of the complex.

Essence of the Agreement and Its Key Participants

In June 2024, Suntrust officially confirmed the signing of a strategic agreement with the major operator Travellers International Hotel Group Inc (TIHGI). This news initially appeared thanks to Inside Asian Gaming and was soon confirmed in Suntrust’s corporate communications.

In addition to Suntrust and TIHGI, the agreement involves Westside City Inc, Westside Bayshore Holding Corporation, and Entertainment City Resorts Corporation (ECRC). All participants are joining forces to accelerate the completion and transfer of rights for the implementation of the LETX integrated resort project in the prestigious Entertainment City district of Manila.

The main goal of the agreement is to organize the fastest possible construction and subsequent transfer of project rights and obligations to new operators. To this end, the parties detailed the procedure for transfer and delineation of management functions between current and future owners of the complex. It is expected that such changes will help avoid delays and optimize management at all stages of the project’s implementation.

Next, it is worth considering how the management structure will change.

New Ownership and Management Structure of the Project

As a result of the signed agreement, ECRC becomes the new management company, through which TIHGI and its parent, Alliance Global Group, gain control over the resort. Once construction of the flagship LETX complex nears completion, TIHGI will assume direct operational management.

Following the deal, Suntrust will retain a 20% indirect stake in ECRC, while LET Group Holdings, which owns 51% of Suntrust shares, will receive an effective share of 10.2% in the overall project. The remaining portion of management and ownership is distributed among the structures of Travellers International and Alliance Global Group. Official documents emphasize that all rights and obligations for the project are transferred to ECRC for its timely commissioning.

Investors and shareholders are faced with new conditions. The reduction of Suntrust and LET Group’s stake means a redistribution of revenues and influence over decision-making. At the same time, the acceleration of timelines and process optimization promises the market additional advantages. But what do the key participants gain and lose as a result of such a deal?

Significance of the Deal for Suntrust and LET Group

The transfer of control over LETX reflects Suntrust’s strategic intention to optimize construction timelines and reduce potential operational risks. According to independent analysts, such a step allows the company to focus resources on other priorities while attracting additional financing from major market players.

For Suntrust, the deal brings clear advantages in the form of faster project completion and reduced costs, as well as risks associated with a reduction in management influence and future revenues. LET Group Holdings, despite the reduction of its stake to 10.2%, retains the status of a minority stakeholder with opportunities to receive a portion of profits in the long-term perspective.

However, not all parties are satisfied with the transparency of the future role of minority shareholders, and experts note that details of revenue distribution and decision-making require further elaboration. Observers point to persisting uncertainties that still need to be resolved as the work progresses.

Special attention should be paid to the cultural component of the complex.

Scale and Features of the LETX Project

LETX was conceived as a next-generation integrated resort: a five-star hotel, a modern casino, a shopping and entertainment complex, and a theater and concert venue are all combined in one location. This format implies the creation of infrastructure where guests have access to a wide range of services and entertainment in a single space. For the Philippine market, this project is intended to become an analogue to well-known Asian resorts that combine gaming, gastronomic, and cultural leisure.

A distinctive feature of the complex will be facilities focused on the development of national culture. The architects have planned the creation of the Artists Promenade, the legendary Grand Opera House, as well as the Apollo, Bohemia, and Crown theaters, where large-scale productions and festivals are planned. The project is often called the “Philippine Broadway”—such a metaphorical definition is intended to emphasize the cultural significance and scale of the initiative. What new opportunities will LETX open up for residents and guests of the Philippines?

What Does Such an Agreement Mean for the Future of the Industry?

Entertainment City in Manila is the largest cluster of the entertainment and tourism industry in the Philippines, forming since the early 2010s at the initiative of the government. Well-known complexes such as Okada Manila and City of Dreams are already operating here, and the region consistently attracts the attention of investors from Asia and the West. The largest hotel and gaming operators consider this area the main driver of tourism industry growth.

Suntrust is a subsidiary of Hong Kong-listed LET Group Holdings, known for its entertainment projects in Asia. TIHGI is the operator of the iconic Newport World Resorts and is part of Alliance Global Group. The latter positions itself as one of the largest holdings in the Philippine market. Against the backdrop of competition with mega-projects in Singapore and Macau, such as Marina Bay Sands, the new resort in Manila strengthens the country’s regional position, opening up additional opportunities for capital and tourist inflows.

The resort project takes all factors into account, including the fact that online casinos are very popular in the country—this segment is among the fastest-growing in the gaming business. Online casinos are regulated by PAGCOR (Philippine Amusement and Gaming Corporation), which issues licenses. However, there is a nuance—these gaming establishments are targeted at foreigners, and Filipinos are prohibited from playing in them. This creates certain legal ambiguities and forces the population to focus on international projects.

This is especially relevant given that such resources offer interesting entertainment. This fact is also confirmed by data on the Aviatrix site, according to which the number of sites with Aviatrix and other crash games is growing. This is one of the latest trends in the gambling industry, popular, in particular, among residents of the Philippines.

At the same time, games in land-based casinos are fully legal for local residents, so large projects such as the Manila resort are aimed not only at tourists. They also affect the domestic market.

Forecasts and Expectations of Market Participants

Officials from Suntrust and TIHGI in press releases express confidence that thanks to the new agreement, the timeline for completing the construction of LETX will be significantly shortened, and the commissioning of the complex will take place by the end of 2025. According to Goldman Sachs experts, the LETX project can reach break-even within the first four years of operation, provided stable tourist flows and high demand for entertainment services are maintained.

Independent analysts note that such deals have a positive effect on the investment climate in the Philippines and increase the attractiveness of the market for foreign operators. At the same time, objective risks remain, related to the scale of work, regulatory restrictions, and possible changes in the strategies of key participants.

There are ongoing debates in professional circles about how quickly the integrated resort will be able to take a leading position among competitors in Asia. Some experts point to the distinctive features of the project and cite the successful model of Singapore’s Marina Bay Sands as an example. Others emphasize that the level of uncertainty remains high, and there are no clear guarantees regarding the completion deadlines for the complex at this time.

Thus, the coming years will be decisive for shaping the new face of the entertainment market in the Philippines and the entire region.