Acesite (Phils.) Hotel Corp. has suspended the reconstruction of the Waterfront Manila Pavilion Hotel, citing rising construction costs and weak tourism and gaming industry conditions. In a stock exchange filing reported by BusinessWorld, the listed hotel operator said the rebuilding budget has risen to about P3.6 billion, well above earlier estimates, undermining the project's viability.
The company attributed the suspension to a challenging operating environment, including sluggish tourism recovery and reduced gaming revenues. The P3.6-billion cost projection represents a substantial increase from initial budgets, driven by inflation in construction materials and labor.
The suspension comes as the Philippine hospitality sector faces headwinds from global economic uncertainty and shifting travel patterns. Acesite said it will continue to evaluate market conditions before deciding on a timeline for resuming the rebuild.