PH Resorts Reclassified After Casino Licence Loss

PH Resorts Group Holdings (PHR) is set to be reclassified by the Philippine Stock Exchange, moving from the “Casinos & Gaming” subsector to “Hotel & Leisure” following the loss of its provisional casino licence earlier this month. The change will take effect on January 5 and forms part of a broader reshuffle affecting service-sector companies, with PHR becoming the 13th firm to undergo reclassification.

Casino ambitions put on hold

The reclassification reflects more than a technical adjustment. It effectively signals the suspension of PHR’s near-term plans in the integrated resort space. The move follows the cancellation of the company’s provisional gaming licence tied to the long-delayed Emerald Bay project in Lapu-Lapu City, Cebu.

Originally approved in 2017, Emerald Bay has faced persistent development challenges. The Philippine Amusement and Gaming Corporation (PAGCOR) ultimately revoked the licence, citing insufficient funding to complete construction. The decision also undermined potential recovery plans involving EEI Corp, which had been viewed as a possible partner to help finish the project, albeit on a reduced scale.

Financial strain intensifies

The collapse of Emerald Bay has had a material impact on PHR’s financial position. After a sale-and-leaseback agreement with China Banking Corp. expired on March 31, 2025, the company was forced to write down significant assets. This resulted in the removal of PHP13.65 billion (US$240 million) in property-related assets and PHP8.75 billion (US$154 million) in associated liabilities from its balance sheet.

In a disclosure issued in November, PHR acknowledged “material uncertainty” surrounding its ability to continue as a going concern, pointing to ongoing difficulties in asset realization and debt settlement. While the outlook remains challenging, a filing dated December 19 confirmed that management is still reviewing strategic alternatives.

These options include redeveloping existing assets, pursuing joint ventures, or exploring mergers and acquisitions. However, the company stressed that no definitive decisions have been made at this stage.

Unclear path forward

With Emerald Bay effectively abandoned and all funds raised for the project fully spent, PHR now faces a pivotal period. No capital remains earmarked for the development, leaving the group to reassess its future direction as it transitions away from casino-led ambitions and into a revised operating classification.