Philippines opportunity underappreciated by investors
- Details are scarce but we think MPEL will invest between US$300-580 million and procure a management fee
- The phase one construction cost may be around US$700 million with any additional hotel towers/amenities likely funded almost exclusively by MPEL
- As can be seen from the chart, MPEL generates positive shareholder value if the project generates EBITDA north of $125 million. Resorts World Manila – the only existing integrated casino resort in the Philippines – generates annualized EBITDA over US$300 million.