Shares of Bloomberry Resorts Corp experienced robust trading activity on the Philippine Stock Exchange last week, fueled by heightened foreign buying, particularly on positive sentiments ahead of the upcoming opening of Solaire Resort North in Quezon City. The week saw a substantial turnover of Php654.6 million (US$11.6 million) worth of Bloomberry shares, resulting in an impressive 8.7% surge in stock prices to Php10.98. Foreign investors played a significant role, with net foreign buying reaching Php269.32 million (US$4.8 million) over four out of five trading sessions.
Market Analysis:
Despite the absence of significant news, the surge in Bloomberry’s stock price is attributed to strong foreign interest, hinting at the positive impact of the impending launch of Solaire Resort North. Analysts, including Rastine Mackie D. Mercado from China Bank Securities Corp, believe that the opening of the new resort is a key catalyst for the stock’s positive momentum. Mercantile Securities Corp analyst Jeff Radley C. See points out that investors are eagerly anticipating the resort’s launch in March 2024, with expectations that it will drive Bloomberry’s revenue upwards.
Investor Outlook:
The surge in Bloomberry’s share value is reflective of investor confidence in the prospects of Solaire Resort North. Analysts predict that the company may reach Php50 billion in valuation by the end of 2023. This optimistic outlook is underpinned by the anticipation of the new resort catering to upscale mass-focused offerings, aligning with the expected surge in post-pandemic domestic mass and regional premium mass demand.
Solaire Resort North Overview:
Solaire Resort North, scheduled to open in early 2Q23, has faced delays attributed to the challenges posed by the COVID-19 pandemic. Bloomberry’s Chairman and CEO, Enrique K. Razon Jr, has positioned the new property as an upscale mass-focused offering. It is poised to complement the existing Solaire and the revamped Solaire Club, aiming to significantly expand Bloomberry’s gaming footprint and tap into the anticipated surge in post-pandemic demand.
CEO’s Vision:
Enrique K. Razon Jr envisions Solaire Resort North as a strategic move to cater to the evolving dynamics of the gaming and hospitality industry post-pandemic. Describing it as an upscale mass-focused offering, Razon sees the new property as a pivotal element in expanding Bloomberry’s influence in both domestic and regional markets. The CEO anticipates capitalizing on the growing demand for premium mass experiences in the aftermath of the pandemic.
Comparison with Existing Ventures:
Solaire Resort North marks Bloomberry’s second integrated resort (IR) in the Philippines, following the success of Solaire Resort Entertainment City, which became the market leader upon its opening in 2013. The expansion strategy aligns with the company’s commitment to diversify its offerings and capture a broader segment of the market.
Bloomberry Resorts Corp’s recent surge in stock performance, driven by strong foreign interest, underscores the market’s positive anticipation of the opening of Solaire Resort North. With the resort set to launch in the coming months, analysts project a significant impact on Bloomberry’s revenue and overall market position. Investors are closely watching as the company navigates the post-pandemic landscape, strategically expanding its portfolio to meet the evolving demands of the gaming and hospitality sector.