Australian firm Frontier Capital Group has completed the takeover of Hotel Stotsenberg and Casablanca Casino in the Clark Freeport Zone (50 miles northwest of Metro Manila), taking advantage of the $1.5-billion upgrade of Clark International Airport nearby.
Frontier Capital told the Australian Stock Exchange that it acquired Stotsenberg Leisure & Hotel Corp., the company's first foray into the gaming and hospitality industry. Representatives from Frontier said the total acquisition cost was $26 million.
Frontier Capital secured a $25 million profit guarantee over five years from E!xcite Gaming and Entertainment, the operator of the hotel and gaming business. Thanks to the development of the airport, forecast profit is expected to more than double to $11.7 million (from $5 million) over the next two years, Frontier Capital COO Ken Wong said in the disclosure.
The expansion of the Clark International Airport will double the number of passengers to 8 million in 2017 and 80 million by 2032.