Davao City tycoon Dennis Uy and EEI Corporation have made a deal to complete the long-delayed Emerald Bay integrated resort in Cebu.
On Monday (9 December) Uy’s PH Resorts (PHR) signed a memorandum of understanding (MoU) with EEI, an almost century-old local construction firm, to finish Philippines resort Emerald Bay. PHR broke ground on the integrated resort (IR) in 2017 with a plan to open in 2021.
According to the Philippines Business Mirror, the MoU “provides an avenue for a potential partnership between EEI and PHR”. The deal hangs on “definitive agreements subject to the fulfilment of conditions, precedent and regulatory approvals, if any”.
Given the go-ahead, EEI would finance and complete the long-idle property through PHR or its development subsideries Lapulapu Leisure and Lapulapu Land.
“PHR will make the necessary disclosures at the appropriate time when the deal terms are finalised,” PHR stated.
Is third time the charm for PHR?
This is Uy’s third attempt to complete the PHP17.5 billion (£235.35 million/€285.9 million/$465 million) Philippines’ resort. In May 2022, Enrique K Razon Jr’s Bloomberry Resorts Corp bought into the project with a potential investment in PHR or its units. That deal fell through in March 2023.
In December 2023, Uy found a new partner in Okada Manila operator Tiger Resort Leisure and Entertainment Inc. That deal went south in July.
The long-delayed project has hit PHR where it hurts: the bottom line. Last year, the company posted a net loss of PHP4.21 billion, almost four times the PHP1.13 billion shed in 2022. To date in 2024, losses total PHP392.48 million, an improvement over last year’s PHP2.2 billion loss.
Players include a Marcos connection
Dennis Uy owns PHR and its parent, Udenna Corporation. The tycoon ranked 19th on the 2024 Forbes list of the Philippines’ wealthiest people. He has a current net worth of $920 million.
EEI is jointly owned by the Yuchengco family – 36th on the list with $420 million – and speaker of the country’s house of representatives Martin Romualdez, a cousin of president Ferdinand Marcos Jr.
In 2023, Romauldez acquired 20% of the company, reducing the Yuchengcos’ 55.3% majority stake to 35.3%. The family’s House of Investments (HOI) described Romauldez as a “strategic partner”.
In February, EEI CEO Henry Antonio expressed broad-based support for Marcos’ sweeping PHP8.3 trillion infrastructure programme for the Philippines.
“We look forward to the connectivity infrastructures that could support the country’s economic growth and nation-building,” he said in comments to the Philippines Daily Tribune. “Infrastructures are important in boosting the country’s economy, tourism and foreign investments.”
Emerald Bay would join Nustar, Mactan World in Cebu
Emerald Bay was touted as a five-star beachfront resort with two hotel towers, four pools, 18 restaurants and conference facilities. It will include a gaming floor with 700 electronic gaming machines and more than 140 tables.
If completed, it would join Nustar Resort and Casino, owned by Universal Hotels and Resorts, which opened in 2022. Billionaire Kevin Tan will add a third IR, Mactan World Resorts, which will break ground in 2025.
Tourism data shows that 17% of all global travellers to the Philippines visit Cebu, second only to Manila.
