November 20, 2014

BLOOM to open Sky Tower

In a disclosure to the Exchange today, Bloomberry Resorts Corp (BLOOM, Buy) yesterday said its Sky Tower is on track to open this weekend. The new facility is contiguous with the existing Solaire Resort and Casino and will feature a 312 all-suite hotel, an exclusive Chinese restaurant, a whisky and cigar bar for VIP gamers, meeting rooms, a 1,760-seat lyrical theater, and a parking facility for 3,000 vehicles. More importantly, the Sky Tower will have 10 new gaming salons with 66 VIP tables and 223 slot machines.

Our take: Sky Tower’s opening comes ahead of the soft launch of the City of Dreams Manila which is reportedly slated for early next month. This is among the catalysts that we have imputed in our estimates and form part of the reasons for our Buy rating on Bloomberry Resorts Corp. Other catalysts in the horizon are the completion next year of an expressway that will link the Entertainment City (where Solaire and CoD Manila are located) to the three terminals of the international airport and the key central business districts.

Further down the road, BLOOM should get a further boost from possible acquisitions or expansion, including the Phase 2 of its expansion plan which by management estimates can double the existing capacity of Solaire. - WealthSec