Davao tycoon Dennis A. Uy’s PH Resorts Group Holdings Inc. reported that it has failed to sell its Emerald Bay casino resort project in Cebu to Okada Manila owner Tiger Resort Leisure & Entertainment Inc. (TRLEI).
In a disclosure to the Philippine Stock Exchange (PSE), the firm said its subsidiary PH Travel and Leisure Holdings Corporation (PHTLC) has received a letter from TRLEI terminating the Term Sheet dated Dec. 8, 2023.
The Term Sheet was the basis for TRLEI’s acquisition of a significant majority ownership of PH Travel’s subsidiaries, namely, Lapulapu Leisure, Inc. and Lapulapu Land Corporation. These entities operate the Emerald Bay Project in Mactan, Cebu.
Initially, the parties intended to execute the definitive agreements under the term sheet in July 2024.
“We understand that the Okada Manila operator no longer intends to pursue the Emerald Bay acquisition,” said PHR President Raymundo Martin M. Escalona.
He noted that “nevertheless, this development shall give PHR the opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay Project, but have been unable to formalize due to the restrictions under the TRLEI deal.”
“We assure our shareholders and stakeholders, however, that the Company’s management is already working towards another transaction, be it an acquisition, joint venture, or otherwise, that will ensure the completion of the Emerald Bay Project,” added Escalona.
PHR said it will “make the necessary disclosures to the public on further developments at the appropriate time.”
Last December, TRLEI announced a plan to complete the partially-developed Emerald Bay Resort in Cebu, after entering into an exclusive partnership with Lapulapu Leisure and Lapulapu Land Corp.
“This new venture is aligned with our strategy to increase our footprint in the Philippines, given our remarkable success with Okada Manila,” said Byron Yip, President and Chief Operating Officer of TRLEI.
He added that “we are excited to bring our signature level of hospitality and service excellence to a new and discerning market.”
The resort project on Mactan Island is planned to be an integrated resort with a five-star hotel adjacent to 300 meters of beachfront, with two 15-storey towers accommodating 642 rooms, four pools, 18 food and beverage outlets, retail spaces, conference and exhibition facilities, and a large-scale gaming floor with more than 700 electronic gaming machines and more than 140 tables.
The Okada Manila owners had executed an agreement with PHR’s operating subsidiaries to acquire a majority ownership of of LLI and LLC, subject to various conditions, allowing them to take over the development of the Emerald Bay Resort.
The conditions include among others, the execution of a definitive agreement and the approval from the relevant governmental authorities, if any.
PHR Chairman Dennis A. Uy added, “in PHR’s partnership with Okada Manila, we hope to turn Emerald Bay Resort into a symbol for, and a catalyst of, the development of Cebu as the center of the Visayan tourism market in the Philippines.”