Crazy Time: NuStar Resort: The NuStar Resort and Casino is one of the most ambitious integrated developments in Southeast Asia, strategically located in Cebu, Philippines. Designed to be a world-class entertainment and hospitality complex, NuStar combines luxury accommodations, premium gaming facilities, retail, dining, and event venues. While the facilities and grandeur of the resort captivate guests, it’s the ownership and operational structure behind NuStar that truly reflects the sophistication of the project.
NuStar Resort: Overview of NuStar Resort and Casino
| Feature | Details |
|---|---|
| Location | South Road Properties, Cebu City, Philippines |
| Primary Function | Integrated resort with casino and hotel |
| Key Facilities | Casino, Hotel Towers, Retail Mall, Theater |
| Target Market | Tourists, Gamblers, Business Travelers |
| Opening Year (Phase 1) | 2022 |
| Total Estimated Investment | Over $500 million |
NuStar Resort: NuStar is designed to compete with the likes of integrated resorts in Macau and Singapore. It is seen as a central piece in Cebu’s tourism and economic development strategy.
Key Stakeholders and Ownership
NuStar Resort: The ownership of NuStar Resort and Casino is a layered structure involving both private investment and government-linked corporations. At the helm is the Universal Hotels and Resorts, Inc. (UHRI).
Ownership Table
| Entity | Role in Ownership | Stake (%) |
|---|---|---|
| Universal Hotels and Resorts, Inc. | Lead Developer and Operator | 100% |
| Udenna Corporation | Parent Company of UHRI | Full Owner of UHRI |
| Dennis Uy | Owner of Udenna Corporation | 100% (Private Ownership) |
Explanation:
- Universal Hotels and Resorts, Inc. (UHRI) is the registered developer and primary operator of the NuStar Resort and Casino. UHRI handles the planning, financing, and day-to-day management of the resort.
- Udenna Corporation, a holding company based in the Philippines, owns UHRI. This conglomerate has diverse interests in oil, logistics, education, food, and tourism.
- Dennis Uy, a prominent Filipino businessman, is the founder and sole owner of Udenna Corporation, thereby effectively making him the ultimate beneficial owner of NuStar Resort and Casino.
Public-Private Partnership with Cebu City
NuStar Resort: One unique aspect of NuStar’s development is its land use arrangement. The resort is situated on reclaimed land owned by the Cebu City Government. However, instead of a typical lease or outright sale, the agreement involves a long-term Joint Venture Agreement.
Public-Private Agreement Table
| Party Involved | Nature of Participation | Duration | Notes |
|---|---|---|---|
| Cebu City Government | Land Contributor (via Joint Venture) | 50 years | Receives share of revenue and fixed payments |
| UHRI / Udenna | Developer, Financier, Operator | 50 years | Bears development and operational costs |
This arrangement allows Cebu City to benefit from the project’s success without bearing the financial risk. The city receives a percentage of gaming and non-gaming revenue, along with employment benefits for local residents.
Revenue Streams and Financials
NuStar is structured as a multi-revenue channel enterprise. It draws income from both gaming and non-gaming operations, a strategy that enhances its sustainability and market reach.
Revenue Model
| Revenue Source | Description | Contribution (%) |
|---|---|---|
| Casino | Table games, slot machines, VIP rooms | 60% |
| Hotel & Hospitality | Room bookings, events, banquets | 15% |
| Retail & Dining | Mall lease rentals, food and beverage outlets | 15% |
| Entertainment | Shows, theater, events | 5% |
| Others | Parking, service charges, commissions | 5% |
UHRI forecasts strong revenue growth, targeting high-spending tourists from China, South Korea, Japan, and local high-net-worth individuals.
Management and Operations
While UHRI is the corporate owner and developer, day-to-day operations are typically handled by a subsidiary management team or through partnerships with experienced hospitality and gaming professionals.
| Department | Leadership Style | Outsourced? |
|---|---|---|
| Casino Operations | Managed in-house with hired experts | No |
| Hotel Operations | Hospitality professionals (contract) | Partially |
| Security and Compliance | Strict in-house protocols | No |
| Marketing and PR | Mix of in-house and agencies | Yes |
| Human Resources | Local hiring preference | No |
Future Expansion Plans
The resort is being developed in phases. Phase 1 included the casino, one hotel tower, and retail. Future phases may include:
- Second Hotel Tower: Ultra-luxury branded suites
- Convention and Exhibition Center
- Marina or Yacht Club
- Additional Residential Towers (for VIP members)
Challenges and Controversies
No large-scale project is without scrutiny. NuStar has faced:
- Environmental Concerns: Due to land reclamation and potential coastal impacts.
- Political Scrutiny: As Dennis Uy is seen as an ally of former President Rodrigo Duterte, some critics question the neutrality of city agreements.
- COVID-19 Impact: Delays and uncertainty during pandemic years.
Nonetheless, with operations now underway, NuStar is regaining momentum and tourism traffic.
Conclusion
The NuStar Resort and Casino exemplifies the fusion of private capital, government partnerships, and bold vision in shaping modern tourism infrastructure. Owned and developed by Dennis Uy through Udenna Corporation and Universal Hotels and Resorts, the project is not just a business venture—it’s a symbol of Cebu’s growing global tourism ambitions.
While challenges remain, NuStar is poised to become a pillar of entertainment and hospitality in the region, influencing similar developments across Southeast Asia.
