Bloomberry Resorts, a prominent casino operator based in the Philippines, has recently announced its openness to the possibility of selling its Jeju Sun Hotel & Casino, located on Jeju Island in South Korea. This development comes as the boutique casino resort has been facing financial challenges in recent quarters, despite its charm and a major renovation in 2019.
Jeju Sun’s Financial Struggles and Potential Divestment
Jeju Sun Hotel & Casino, which was acquired by Bloomberry Resorts in September 2015, has a modest gaming space featuring 20 slot machines and 36 table games, along with 202 guest rooms. The property, originally opened in 1990 as T.H.E. Hotel & Las Vegas Casino, underwent a rebranding after its acquisition by Bloomberry.
In a regulatory filing with the Philippine Stock Exchange, Bloomberry Resorts clarified that while it is open to the possibility of selling its interest in Jeju Sun Hotel & Casino and has received several expressions of interest and offers in the past, there is no imminent deal in place. However, the company acknowledged that there is growing interest in the property from potential buyers.
Solaire’s Success and Bloomberry’s Philippine Expansion Plans
The financial challenges faced by Jeju Sun Hotel & Casino were highlighted in the third quarter of 2023, when the casino generated a gross gaming revenue (GGR) of just over $250,000, resulting in a net operating loss of $1.53 million for the three-month period ending September 30, 2023. This underperformance has prompted Bloomberry Resorts to consider divesting the property as part of its strategic portfolio optimization.
Bloomberry Resorts, controlled by Filipino businessman Enrique Razon Jr., has been focusing on its flagship property, Solaire, located in Manila’s Entertainment City. Solaire, a $1.2 billion integrated resort casino that opened in March 2013, has become the richest casino in the Philippines, with a gaming space of nearly 200,000 square feet, 369 table games, and 1,883 slot machines.
In addition to Solaire, Bloomberry Resorts has announced plans to expand its presence in the Philippines. The company is currently developing Solaire Resort North in Quezon City, which is expected to open later this year with 500 guest rooms and a casino featuring 200 tables and 3,000 slot machines. Bloomberry has partnered with a group of business owners to develop a casino hotel at the Paniman Beach Resort, southwest of Manila, which will commence after the opening of Solaire North.
Market Adaptation and Strategic Moves in the Casino Industry
The potential sale of Jeju Sun Hotel & Casino reflects Bloomberry Resorts’ strategy to optimize its portfolio and focus on high-performing assets. By divesting underperforming properties and investing in new, promising ventures, the company aims to strengthen its position in the competitive casino market.
As the casino industry continues to evolve, it is essential for operators to adapt to changing market conditions and consumer preferences. Bloomberry Resorts’ decision to consider selling Jeju Sun Hotel & Casino demonstrates the company’s commitment to making strategic decisions that align with its long-term growth objectives and maximize value for its stakeholders.
The potential sale of Jeju Sun Hotel & Casino is an important development in the Asian casino market, and industry observers will be closely monitoring the situation as it unfolds. The outcome of this potential transaction may have implications for other casino operators in the region and could signal shifts in the competitive landscape.
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