Waterfront Manila Hotel & Casino’s reopening has been put on hold after reconstruction costs rose sharply. Operator Acesite (Phils.) Hotel Corporation has suspended the rebuild while it reviews whether the project still works under current market conditions. The Ermita property, formerly known as Manila Pavilion Hotel, had been expected to reopen in phases from 2026. That plan is no longer moving ahead after the estimated budget rose to about PHP3.6 billion.
Rebuild costs pass insurance funds
Acesite began redevelopment after a 2018 fire damaged the hotel and casino. The company received about PHP1.5 billion from insurance carriers and started reconstruction work in 2019. The latest estimate is now more than double that amount. Higher material, labour and fuel costs have pushed the project beyond the original insurance-backed budget.
The company has also faced added structural and civil works. Keeping the older building shell was meant to save money, but it later created more construction challenges.
Reopening plan is delayed again
Waterfront Manila had already faced several delays before the latest decision. Earlier plans had pointed to a phased reopening, with initial operations in 2026 and a wider return by 2027.
That timeline is now on hold while Acesite reviews the project. The company is not proceeding with the next stage of reconstruction until it has clearer expectations for hotel and casino demand. The building is located along United Nations Avenue in Ermita. It sits near Rizal Park and other central Manila locations.
Tourism and gaming demand affect project
Acesite is also reviewing the project because foreign room demand has remained weak. The company pointed to limited signs of a tourism recovery in 2027. The Manila gaming market has also changed since the fire. Online gaming has grown, while Chinese player traffic has not returned to previous levels after the exit of many POGO-linked operations.
That makes the hotel-casino reopening harder to justify under a higher budget. A larger investment would need stronger hotel and casino demand to support returns.
Company keeps funds for future rebuild
Acesite has set aside PHP764 million in retained earnings for the eventual reconstruction of the property. The company will also keep an annual maintenance budget to preserve the building’s superstructure. The property remains part of Waterfront Philippines’ hotel portfolio. The group has other hotel assets in Cebu, Davao and Mactan, while the Manila site is closed until the rebuild becomes more viable.
