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An Easier Solution

This note was originally published at 8am on March 08, 2012. INVESTOR and RISK MANAGER SUBSCRIBERS have access to the EARLY LOOK (published by 8am every trading day) and PORTFOLIO IDEAS in real-time.

“At the end of this decade, in the year 1980, the United States will not be dependent on any other country for the energy we need to provide our jobs, to heat our homes, and to keep our transportation moving.”

- Richard Nixon, 1973

 

The current obsession in the US with energy independence is not a new one.  Richard Nixon, quoted above, embarked on “Project Independence” after the 1973 OPEC embargo led to a world oil crisis; nearly every president since has set a similar goal – none have come close to reaching it.  In 1973 the US imported 34% of its consumed petroleum; today, we import 45%.

 

In a speech yesterday, President Obama summarized his broad energy plan, “If we are going to control our energy future, then we’ve got to have an all-of-the-above strategy.  We’ve got to develop every source of American energy -- not just oil and gas, but wind power and solar power, nuclear power, biofuels.”

 

That sounds like a pretty good idea, particularly as prices at the pump have ripped to an all-time high for March, $3.76 per gallon.  As a direct result, gasoline consumption has fallen to the lowest level in over a decade, and is running 6.5% below last year’s level.

 

While energy independence is not an original idea, is it more realistic this time around?

 

It’s key to understand that the US does not have an energy crisis – it has a liquids fuel shortage.  71% of the petroleum consumed in the US is by the transportation sector; only 1% is used to generate electric power.  The US is actually abundant in its two largest power-generating sources, coal and natural gas, with the 1st and 6th largest recoverable reserves in the world, respectively.

 

Currently, solar and wind can only be used to generate electricity, so it is difficult to see how developing these renewable sources will lower gasoline prices or make us any more energy independent.  Further, because of issues with intermittency (the sun shines during the day, the wind blows at night, and the energy cannot be stored), low electricity conversion rates, large space requirements, and higher-than-expected operating and maintenance costs, solar and wind are simply not economic.  Even with government subsidies and private investment, the EIA estimates that solar will generate less than 1% of US electricity in 2035.  Solyndra…?  First Solar…?

 

Nuclear power, like solar and wind, can do very little to solve our liquids fuel shortage, as 100% of nuclear energy generated in the US is for electricity.  Regardless, there has been almost no new nuclear construction in the US in the last 30 years because of rising capital costs and risks, particularly after the nuclear disasters of the 80’s.  It is puzzling why President Obama is intent on revitalizing nuclear in the US only months after Japan’s Fukushima disaster.  And nuclear power is hardly a domestic resource – the US imports more than 80% of its required uranium.

 

Ethanol and biodiesel supplied 0.5% of the world’s primary energy in 2010; but increasing biofuel production comes at the cost of the world’s food and water supply.  If the US were to use its entire corn harvest to produce ethanol, it would only replace 8% of the country’s annual gasoline demand.  Cellulosic ethanol (ethanol produced from agricultural waste) has less of an impact on the world’s food, water, and fertilizer sources, though is challenged by extraction and aggregation costs as well as low energy density.

 

This is not a smear campaign against alternative and renewable energy sources.  With investment and time, technologies that are not currently economic, viable, or scalable one day will be, lessening our need for petroleum fuels.  The US should invest more (wisely) in energy R&D, starting with natural gas vehicles and the necessary refueling infrastructure.

 

But energy transitions take time.  Not years – decades, perhaps even generations.  Natural gas took 60 years from the time it was first commercially extracted (1870s) before it was 5% of the world’s primary energy market.

 

President Obama stated earlier this week that, “Folks are getting killed right now with gas prices.”  Touting alternative energy does nothing to fix that; neither does blaming rising oil prices on tensions in Iran, growth in China, and those pesky Wall Street speculators.  The only legitimate way to lower gasoline prices in the immediate term is the one that most of our leaders never consider: raising interest rates.

 

Near-zero interest rates and massive liquidity injections from the developed world’s central banks have driven investors into real assets, like oil and gold, in an effort to preserve purchasing power.  Net length among non-commercial traders in NYMEX crude oil futures and options is 333,000 contracts, nearly double the July 2008 high of 170,000 contracts when oil spiked to $145 per barrel.  In 1991, there were 3.3 dollars of money supply to every 1 barrel of oil; today there are 7.1 dollars chasing that 1 barrel.  And while the price of gasoline in dollars has increased 95% since March 2009, gasoline priced in an ounce of gold is only +7% over the same period.

 

Many factors influence the price of oil – supply, demand, geopolitical risk – but monetary policy is really the only one within the US’s control, and that policy cannot be any more inflationary for the price of petrol.  Recognition of such would be a refreshing dose of accountability; it would also give consumers a much-needed break at the pump.

 

Our immediate-term support and resistance ranges for Gold, Brent Oil, WTIC Oil, Natural Gas, US Dollar Index, and the SP500 are now $1693-1725, $123.31-126.81, $106.13-109.22, $2.21-2.39, $79.36-80.21, and 1345-1363, respectively.

 

Kevin Kaiser

Analyst

 

An Easier Solution - EL chart

 

An Easier Solution - vp 3 8


THE M3: S'PORE 1ST JUNKETS; MBS JUNKET CLAIM

The Macau Metro Monitor, March 22, 2012

 

 

CRA AWARDS LICENSES TO 2 MALAYSIAN JUNKET OPERATORS Business Times

The Casino Regulatory Authority of Singapore (CRA) has awarded the first batch of licences to two international market agents (IMA) Huang Yu Kiung and Low Chong Aun.  The two Malaysian junkets will operate at RWS.

 

CRA said the IMAs will focus on bringing in foreign high rollers to casinos here, and they will not target locals.  It is in the midst of evaluating a few other applications and conducting probity checks for these applications. Twelve applications have been rejected.

 

'The robust regulatory regime would ensure that licensed IMAs conduct business in a tightly regulated environment, said the CRA.  The licenses will be issued for an 1-year duration and licensed IMAs must ensure that they continue to remain suitable to hold the licences.

 

ANOTHER MBS SUIT, ANOTHER JUNKET CLAIM Business Times

Allegations of junket activity at Marina Bay Sands have surfaced again, this time in court papers filed by Takami Shinichi, a Singapore-based Japanese businessman being sued by the casino over a $2 million gambling debt.  Shinichi, managing director of Avixs Master Fund Pte Ltd, claims in a High Court affidavit that he gained access to MBS's VIP gaming rooms through Chujo Tatsuya, a Nevada-licensed junket operator.  Shinichi said he met Tatsuya at a Las Vegas casino several years ago, that had arranged for him to gamble at MBS by putting him in touch with a Japanese VIP hostess and inviting him to MBS's opening party in late June 2010.

'I do not know if Mr Chujo received any 'kick-back' from the monies I gambled, but I do know that it is the practice for junkets to receive such commissions,' Mr Shinichi said. 'I am now told that if any player plays under a junket, no credit can be given to him.'

 

In Shinichi's case, Sunil Singh Panoo, his lawyer, argued that his $2 million debt is not enforceable because Mr Shinichi was not a premium player before he began gambling at the casino on June 25, 2010.  Shinichi also said in his affidavit that 'MBS didn't follow the rules and procedures required for credit transactions'.  But MBS disagreed, saying that Mr Shinichi was a premium player at its Paiza Club after he deposited $300,000 with the casino on June 17, 2010. 

 

The Casino Regulatory Authority said last night that it does not comment on ongoing court cases. 

Robert Goldstein, LVS president of global gaming operations, said that he is patiently waiting for the government's instruction.  "But I don't think it'll be that material either way. If they do approve junkets, it will be a very, very restrictive environment, which will make it difficult for those junkets that operate in Macau to be here.  So our approach has been and will continue to be very focused on developing a sales team that can go direct to customers. We do take on credit, direct credit, and are so far comfortable with that.'


THE HEDGEYE DAILY OUTLOOK

TODAY’S S&P 500 SET-UP – March 22, 2012


As we look at today’s set up for the S&P 500, the range is 16 points or -0.56% downside to 1395 and 0.58% upside to 1411. 

 

SECTOR AND GLOBAL PERFORMANCE

 

THE HEDGEYE DAILY OUTLOOK - 1

 

THE HEDGEYE DAILY OUTLOOK - 2

 

THE HEDGEYE DAILY OUTLOOK - 3

 

 

EQUITY SENTIMENT:

  • ADVANCE/DECLINE LINE: -32 (986) 
  • VOLUME: NYSE 726.47 (2.16%)
  • VIX:  15.13 -2.89% YTD PERFORMANCE: -35.34%
  • SPX PUT/CALL RATIO: 3.27 from 2.22 (47.30%)

CREDIT/ECONOMIC MARKET LOOK:

  • TED SPREAD: 38.78
  • 3-MONTH T-BILL YIELD: 0.08%
  • 10-Year: 2.26 from 2.30
  • YIELD CURVE: 1.89 from 1.93 

MACRO DATA POINTS (Bloomberg Estimates):

  • 8:30am: Jobless claims, week of Mar. 17, est. 350k (prior 351k)
  • 9:45am, Bloomberg Consumer Comfort, week Mar. 18 (prior -33.7)
  • 10am: House Price Index (M/m), Jan., est. 0.3% (prior 0.7%)
  • 10am: Leading Indicators, Feb., est. 0.6% (prior 0.4%)
  • 10am: Fed’s Tarullo testifies to Senate committee on regulation and Volcker rule
  • 10am: Freddie Mac 30-yr mortgage
  • 10:30am: EIA natural gas storage
  • 12:45pm: Fed Chairman Bernanke lectures at George Washington U. (2 of 4)
  • 1pm: U.S. to sell $13b 10-yr TIPS (reopen)
  • 4pm: Fed’s Evans speaks on communication at Brookings
  • 8pm: Fed’s Bullard speaks in Hong Kong
  • U.S. Treasury announces 2-, 5-, 7-yr auction sizes 

GOVERNMENT:

  • President Barack Obama to speak on energy infrastructure in Oklahoma, 10:55am
  • Obama attends event on energy-related research, development at Ohio State University, 4:30pm
  • House, Senate in session:
    • Senate Armed Services Committee holds hearing on the situation in Afghanistan, 9:30am
    • House Ways and Means subcommittee hears from IRS Commissioner Doug Shulman on its operations and the tax filing season, 9:30am
    • Senate Appropriations subcommittee hears from Commerce Secretary John Bryson on his agency’s proposed budget, 10am
    • Senate Environment Committee hears from Environmental Protection Agency Administrator Lisa Jackson on the agency’s budget, 10am
    • Senate Banking Committee hears from Treasury Undersecretary Lael Brainard, Fed member Daniel Tarullo and FDIC acting Chairman Martin Gruenberg on the Volcker rule, 10am
    • House Appropriations subcommittee hears from acting Federal Aviation Administration chief Michael Huerta on the agency’s budget, 10am
    • House Appropriations subcommittee hears from Commodity Futures Trading Commission Chairman Gary Gensler on the agency’s budget, 10:30am   

WHAT TO WATCH:   

  • McDonald’s CEO Jim Skinner is retiring after almost 8 yrs at helm, to be succeeded by COO Don Thompson
  • Bats Global Markets will seek more than $100m for owners today, plans to sell 6.3m shrs at $16-$18 each
  • Abstracts for EASL’s International Liver Congress may be
  • released on embargo
  • Chinese manufacturing index indicated a worse contraction this month; prelim. 48.1 reading in a purchasing managers’ index is the lowest since Nov.
  • Sony said to tap Studio Chief Lynton to oversee U.S. media units
  • Former Fed Chairman Paul Volcker says U.S. needs reforms in financial sector, govt.
  • Nomura said to be involved in Inpex insider-trading breach
  • American Airlines said to plan to start a bankruptcy-court process for rejecting union contracts by next week
  • Euro-area services, manufacturing output contracted more than economists forecast in March
  • Hartford fails to satisfy holder John Paulson with plan to shrink insurer
  • Vantiv raised $500m in IPO at mid-point of price range 

EARNINGS:

    • IHS (IHS) 6 a.m., $0.82
    • Dollar General (DG) 7 a.m., $0.82
    • Lululemon Athletica (LULU) 7:15 a.m., $0.49
    • ConAgra Foods (CAG) 7:30 a.m., $0.48
    • FedEx (FDX) 7:30 a.m., $1.35
    • Signet Jewelers Ltd (SIG) 7:30 a.m., $1.77
    • GameStop (GME) 8:30 a.m., $1.72
    • Accenture (ACN) 4 p.m., $0.86
    • Steelcase (SCS) 4:01 p.m., $0.14
    • Micron Technology (MU) 4:04 p.m., $(0.19)
    • Nike (NKE) 4:15 p.m., $1.17
    • Silver Wheaton (SLW CN) 5 p.m., $0.40 

COMMODITY/GROWTH EXPECTATION (HEADLINES FROM BLOOMBERG)


OIL – probably the only good news this morning is that Oil stopped going up. We sold our long Oil position and took our asset allocation to Commodities to 0% because the US Dollar looks like it could put on a big move to the upside again. Immediate-term support lines that broke for WTIC and Brent are $106.79 and $124.89, respectively. 

  • Newedge Says Soy Beats Corn as Cekander Talks Seeds: Commodities
  • Copper Reaches Two-Week Low as Chinese Manufacturing Contracts
  • Gold Drops to Lowest Since January on Manufacturing, U.S. Dollar
  • Crude Declines on Stockpile Release Speculation, China Slowdown
  • Iran Seeking to Import Farm Commodities From India, Group Says
  • Sugar Erases Gains in New York Trading After Rising 0.8%
  • China Grain Output May Have Been Overstated, Imports to Rise
  • England Tsunami Risk Swells Costs at EDF After 40% Slump: Energy
  • Sinofert Has Been in Potash Acquisition Talks, CEO Feng Says
  • Gold Tax Aids Rupee as Deficit Fight Spurs Strike: India Credit
  • Vale, Rio, BHP to Join China’s Spot Iron Ore Platform
  • Water Scarcity to Fuel Global Tensions, Intelligence Report Says
  • BHP Leading Record Foreign-Currency Bond Sales: Australia Credit
  • Crude Futures Decline on Stockpile Release
  • European Crops Damaged by Winter Freeze Now Face Drought Risk
  • H.K. Mercantile Bourse Plans RMB Gold, Silver, Copper Contracts
  • Jewelers in North, East India Continue Strike Over Gold Tax

THE HEDGEYE DAILY OUTLOOK - 4

 

 

CURRENCIES

 

THE HEDGEYE DAILY OUTLOOK - 5

 

 

EUROPEAN MARKETS


SPAIN – Growth Slowing was the most obvious message for the PMI reports across Europe for the month of March. Central Planners can arrest stock market deflations in the short-term, but in the long-run, their ideas to stop economic gravity are dead. Spain’s IBEX remains bearish across all 3 of our risk management durations (down -1.5% this morn).

 

THE HEDGEYE DAILY OUTLOOK - 6

 


ASIAN MARKETS


INDIA – Energy stocks (XLE) stopped making higher-YTD-highs on Feb 24 and India stopped going up on Feb 21; this morning India’s Sensex was down another -1.8% on fundamentals (Growth Slowing As Inflation Accelerates) and is down over 6% from its YTD high. India’s Yield Curve has pancaked.

 

THE HEDGEYE DAILY OUTLOOK - 7

 

 

MIDDLE EAST


THE HEDGEYE DAILY OUTLOOK - 8

 

 

 

The Hedgeye Macro Team

 


Hedgeye Statistics

The total percentage of successful long and short trading signals since the inception of Real-Time Alerts in August of 2008.

  • LONG SIGNALS 80.64%
  • SHORT SIGNALS 78.61%

WEEKLY COMMODITY CHARTBOOK

Commodity moves were mixed over the past week as the dollar index declined.  Coffee gained 0.6% week-over-week but are down more than 19% year-to-date.

 

WEEKLY COMMODITY CHARTBOOK - commod

 

 

CONSUMER CALLOUT

 

Gasoline prices are assuming more importance in the political debate and management commentary, while thus far playing down the impact of gas prices, is likely to change if this current trend continues. Domino’s Pizza yesterday mentioned three ways in which elevated gas prices impacts its business perhaps more directly than many of its peers in the restaurant industry: first, reimbursing drivers for gasoline usage; second, the change in consumer behavior than can result from pressure at the pump; third, the flow through to commodity prices due to higher cost of production for food processing companies.

 

WEEKLY COMMODITY CHARTBOOK - gasoline

 

 

SUPPLY & DEMAND DATAPOINTS

 

Wheat

 

Wheat futures have declined to the lowest level in over a week on signs that precipitation in the Great Plains are improving prospects for winter crops that recently emerged from dormancy. 

 

 

Corn

 

Talk of early planting and big acreage is said to be pressuring the market.

 

Indications of rising ethanol supplies could be pushing corn process lower.  Ethanol inventories gained 3% to a record 22.7 million barrels in the week ended March 16th, up 13% from a year earlier, according to the Energy Department.

 

 

Beef

 

Last week’s cattle slaughter totaled 619k, down 1.9% from the week prior and flat year-over-year.  Year-to-date, according to cattlenetwork, cattle slaughter is down 6% versus the same period last year.

 

U.S. beef producers have started the early stages of herd expansion, according to Purdue Extension agricultural economist Chris Hurt.  Beef cow numbers have dropped by 9% since 2007.  Lower slaughter numbers are expected through 2014.

 

 

Chicken

 

Egg sets placements continue to contract at around the same rate, roughly -5.3% year-over-year for the six-week moving average, according to the Broiler Hatchery report released by the USDA today. This implies that supply will remain tight as the industry looks for more favorable business conditions before expanding production.

 

WEEKLY COMMODITY CHARTBOOK - egg sets

 

RECENT COMPANY COMMENTARY

 

Beef: Most companies are expecting beef cost inflation to be up mid-to-high single digits versus last year

 

TXRH: We expect approximately 8% food inflation in 2012, primarily due to higher beef costs…on the beef side we do have fixed price – pricing arrangements in effect for over 90% of our beef costs in 2012.

 

CBRL: To the continued pressure on ground beef prices and other commodities partly offset by lower average dairy and produce prices, along with benefits from our supply chain initiatives, we expect cost of sales to increase 60 basis points to 80 basis points over 2011 to near 26% in 2012.

 

RUTH: We project 2012 beef inflation to be between 5% and 8%. We currently have purchase agreements for beef representing approximately 30% of our needs through August of 2012, which represents an approximate 7% premium compared to the prior years.

 

CMG:  While we're cautiously optimistic we'll see more reasonable prices in 2012 for avocados, dairy and produce, we expect these benefits will be more than offset by higher costs for our beef, chicken, rice and beans. Beef costs will be especially challenging due to protracted supply shortages, despite recent reductions in grain prices.

 

MCD: As we look at our guidance for 2012, we've built another mid-teens increase for beef, expecting that the dynamics in the marketplaces that we see, and are expecting, will continue.

 

DRI:  U.S. beef production will continue decline though over the next 24 months, placing continued upward pressure on beef prices because of the slow economic recovery hamburger and value oriented beef, cattle beef are in high demand and can be priced accordingly by the packers. At Darden we purchased mainly tenderloins and other premium steakcuts, while we expect pricing for our beef products to increase by 12% our pricing has been tempered by consumers' resistance to record higher retail prices for premium stakes and the resulting shift to value oriented cuts and as you can see beef is approximately 14% of our cost basket … We have 75% of our beef requirements contracted for fiscal 2012 and 40% of the June to December usage under contract for fiscal 2013.

 

SONC: One item to note is that we recently locked in our beef contract for calendar year 2012… given the potential for beef costs going even higher, which there are a lot of reports out there that speculate that could happen, that we chose to go with making this more of a known quantity here, and the idea of having a set price for the next 12 months, we feel like would be good for our business, adds some predictability to the business.

 

 

Coffee: Prices are now down more than 33% versus last year

 

PEET: We expect 2012 coffee costs to rise 12% instead of last year's 42%.

 

SBUX: We've taken advantage of the recent declines in the C-price to lock in more of our coffee needs for fiscal 2013. We now have six months of our fiscal 2013 requirements secured at costs moderately favorable to 2012.

 

 

Dairy: CAKE, DPZ, PZZA, TXRH and others could benefit from favorable cheese costs this year

 

TXRH: The volatility around that 8% estimate for food cost inflation would really be driven by produce and dairy.  Those are of the biggest components that we float around the market, and that's about 15% to 20% of our total cost of sales.

 

CMG: While we're cautiously optimistic we'll see more reasonable prices in 2012 for avocados, dairy and produce, we expect these benefits will be more than offset by higher costs for our beef, chicken, rice and beans.

 

 

CORRELATION TABLE

 

WEEKLY COMMODITY CHARTBOOK - correlation

 

 

CHARTS

 

WEEKLY COMMODITY CHARTBOOK - coffee

 

 

WEEKLY COMMODITY CHARTBOOK - corn

 

 

WEEKLY COMMODITY CHARTBOOK - wheat

 

 

WEEKLY COMMODITY CHARTBOOK - live cattle

 

 

WEEKLY COMMODITY CHARTBOOK - chicken whole breast

 

 

WEEKLY COMMODITY CHARTBOOK - chicken wing

 

 

WEEKLY COMMODITY CHARTBOOK - cheese

 

 

WEEKLY COMMODITY CHARTBOOK - milk

 

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst


THE HBM: SBUX, DPZ, MCD, CMG, EAT, RT

THE HEDGEYE BREAKFAST MONITOR

 

MACRO NOTES

 

Commentary from CEO Keith McCullough

 

Most Read this morn = #1 Apple, #2 Asian Stocks Drop, and #3 Romney Wins:

  1. ASIA – generally weak session in Asian Equities after the Hang Seng snapped my line yesterday; Asian Growth Slowing is a reality right now; the perma-bulls refused to accept it in Q1 of 2011 and are at their own risk doing so now.
  2. YEN – easily the ugliest chart in all of Global Macro right now – also something consensus has not moved towards addressing/understanding yet; we’ll be in Boston all day explaining why we think the Yen’s -9.2% drop since FEB is similar to the initial steep decline of the Euro in April/May of 2011. #SovDebtRisk
  3. SENTIMENT – I’ve been on the road in Canada and Minnesota for the last 3 days and the feedback loop was frothy; allegedly, markets can’t go down because they haven’t yet – with Growth Slowing and seasonality playing negative like it did in Q1 of 08, 2010, and 2011, we look ripe for a counter consensus move (II Bullish/Bearish Survey = 2500 bps wide to the Bull side this morn)

Oil prices > $100 have never not slowed real (inflation adj) growth, globally – ever.

 

KM

 

 

 

SUBSECTOR PERFORMANCE

 

THE HBM: SBUX, DPZ, MCD, CMG, EAT, RT - subsector

 

 

QUICK SERVICE

 

SBUX: Starbucks is hosting its AGM today.  The company, along with Green Mountain, announced an expansion of their strategic relationship for “the manufacturing, marketing, distribution and sale of Starbucks-branded Vue packs for use in GMCR’s recently introduced Keurig Vue Brewer.

 

DPZ: Domino’s Pizza CFO, Michael Lawton, spoke at the J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Conference yesterday.  The company spoke about international strength, particularly in India, and the recent warm weather in the U.S. as being unfavorable for its business.  The company guided to 1-3% comparable restaurant sales in the U.S.

 

MCD: McDonald’s is seeking a 50% rent reduction at its location on Dublin, Ireland’s main retail thoroughfare, Grafton Street.  The company is currently paying a rent of 1.15 million euros per annum.  The landlord, as the date for MCD to sign the new lease approaches, is hoping for a 20% reduction. 

 

CMG: Chipotle Mexican Grill is opening a new restaurant at 71 Spring Street, in Manhattan.

 

NOTABLE PERFORMANCE ON ACCELERATING VOLUME:

 

COSI: Cosi continues to outperform, gaining 6.1% on accelerating volume yesterday.

 

YUM: Yum gained yesterday on accelerating volume despite China weakness.

 

DPZ: Domino’s declined almost 3% on accelerating volume yesterday.

 

 

CASUAL DINING

 

EAT: Brinker International saw its price target increased from $31 to $33 at J.P. Morgan today.  The firm is maintaining an Overweight rating on EAT.

 

RT: Ruby Tuesday was raised to Outperform at Raymond James.

 

THE HBM: SBUX, DPZ, MCD, CMG, EAT, RT - stocks

 

 

Howard Penney

Managing Director

 

Rory Green

Analyst

 


THE M3: SOLAIRE MANILA

The Macau Metro Monitor, March 21, 2012

 

BLOOMBERY COMPLETES INFRA WORK ON RESORT Malaya Business Insight

Bloomberry Resorts topped out Phase 1 of its integrated resort complex in PAGCOR Entertainment City in Pasay City. Bloomberry chairman Enrique K. Razon Jr. said, "We are doubly proud because Solaire Manila will be the first resort to be built and operational here in Entertainment City." 

 

Phase 1 of Solaire Manila which cost an estimated $650MM will include 180,000 square meters of floor area, comprising of a hotel tower, three levels of podium that has ballroom/convention facilities, gaming areas, restaurants, retail shops, and health and wellness facilities. The project's total cost is expected to reach $1.2BN.


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