Acesite Philippines Hotel Corp has stopped reconstruction work at Waterfront Manila Pavilion Hotel in Manila, with management saying the property will likely stay closed until at least 2028.
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The board approved the suspension after management recommended a pause, according to a filing to the Philippine Stock Exchange. Acesite said reopening talks will not likely return before 2028, unless key industry numbers improve.
The company had set aside PHP764 million in retained earnings for the project, but management no longer wants to pour large sums into a reopening plan that may not deliver enough returns.
Acesite now estimates reconstruction costs at PHP3.6 billion. Earlier plans leaned on PHP1.5 billion in insurance proceeds received after the 2018 fire. Cost pressure changed the math. The company cited higher prices for construction materials, labour, and fuel, along with extra structural corrections, civil works, and design changes.
Management said reconstruction would only restart when visitor arrivals, hotel occupancy, average room rates, and gaming revenues show enough strength to support debt payments and investment returns.
“The earliest estimate of this is 2028,” the company said.
Acesite will still fund annual maintenance to keep the existing hotel structure safe and usable while work remains on hold.
The old reopening plan no longer fits the local market view. Acesite had planned a phased return, starting with a soft launch in the first quarter of 2026, to spread out capital needs. Management now sees too many weak spots in that plan.
“The inability of the local market to generate sufficient foreign room sales in 2026, as well as the weak indications of an uptick in tourism arrivals projected for 2027 due to the ongoing protracted U.S.-Israel-Iran war are issues that need serious attention,” the company stated.
Gaming demand also shaped the decision. Acesite said Manila casino activity faces a “serious plateau” as online gaming grows quickly. The company also said Chinese inbound travel has not recovered enough, despite visa free access for Chinese tourists in the Philippines.
“These considerations have prompted management to reconsider the pouring in of additional considerable sums to reopen the hotel at this point in time,” the firm noted.
Waterfront Manila Pavilion Hotel, formerly Waterfront Manila Hotel & Casino, has been closed since a severe March 2018 fire. Reconstruction started in 2019, then slowed during the Covid-19 pandemic. Acesite is 56% owned by Waterfront Philippines Inc.