Suntrust signs O&M deal for casino
Tuesday 5th May 2020
SUNTRUST Home Developers, Inc. has signed an operation and management (O&M) contract with Westside City Resorts World, Inc. for its hotel casino project in Parañaque City.
In a disclosure to the stock exchange on Tuesday, the company said the agreement took effect on May 4, 2020 and will be valid until July 11, 2033. It is to be automatically extended or renewed unless terminated earlier.
"The O&M agreement is among the transactions contemplated in the co-development agreement, executed on October 28, 2019 between Suntrust and Westside," it said.
"Westside, as co-licensee of Travellers International Hotel Group, Inc. under the license issued by the Philippine Amusement and Gaming Corporation, may enter into any agreement or contract for the operation and/or management of the Main Hotel Casino," it added.
Suntrust will be the sole and exclusive operator and manager of the Main Hotel Casino based on the agreement signed.
Suntrust will also be entitled to a fee equivalent to the entirety of the gross revenues of the Main Hotel Casino, minus 1% of the gross gaming revenue on VIP and 3% of the gross gaming revenue on slot machines and mass market tables, which will go to Westside.
The company is currently developing a hotel casino project with Westside as part of Megaworld Corp.'s Westside City at the Manila Bayshore Integrated City in Parañaque. The project is envisioned to be a five-star hotel with at least 400 rooms and a casino establishment.
This is part of Suntrust's venture into the tourism industry after it welcomed Hong Kong's Suncity Group Holdings, Ltd. as a majority investor last year. Suncity's wholly-owned subsidiary Fortune Noble Ltd. bought a 51% stake in Suntrust in October.
Shares in Suntrust at the stock exchange gained six centavos or 5.04% to P1.25 each on Tuesday. -- Denise A. Valdez