Melco considers strategic options for City of Dreams Manila
Melco Resorts & Entertainment Ltd., a Nasdaq-listed integrated casino operator, has announced plans to explore “potential strategic alternatives” for City of Dreams Manila, its 6.2-hectare luxury casino and resort complex in the Philippines.
The company has engaged CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to assess possible options for the property located in Entertainment City, Parañaque. While no specific plans have been confirmed, Melco stated that there is no guarantee the process will lead to a transaction.
City of Dreams Manila faces declining revenue
City of Dreams Manila, operated by Melco Resorts Leisure (PHP) Corp., has been a key player in the Philippines’ casino industry. However, the latest financial results show a decline in revenue.
- Operating income fell 19 percent in 2024, dropping to $89.1 million from $110.14 million in 2023.
- The average daily hotel rate decreased from $177 to $164 per night.
- Revenue per available room also declined from $171 to $158.
Melco operates the resort in partnership with Premium Leisure and Amusement Inc. (PLAI), a subsidiary of Belle Corp., which holds a gaming license for integrated resorts in the country.
E-Gaming gains popularity in the Philippines
The Philippines’ gaming industry is shifting as more players turn to online gambling platforms. The Philippine Gaming and Amusement Corp. (Pagcor) has been adjusting its strategies, including shutting down unprofitable casinos.
Pagcor President and CEO Alejandro Tengco estimates that the country’s gross gaming revenue (GGR) will rise to P450 billion – P480 billion in 2025, up from P410.5 billion in 2024. The e-gaming sector is expected to grow further, potentially matching the performance of traditional brick-and-mortar casinos in the coming years.
Melco Resorts & Entertainment is also planning to invest in integrated resorts and hotel in Thailand. This comes as the operator plans to bank on country’s robust tourism industry and culture, and the approval of legalised gambling.
Lawrence Ho, chairman and chief executive of Melco, dubbed Thailand as a top tourism country with great hospitality and a unique culture. Speaking at a Thailand Creative Culture Agency (THACCA) event, Ho said the company has set up a new office in Bangkok. New opportunities and collaboration will be explored via the new location.
One of the biggest factors driving Melco’s investment in Thailand is the potential for legalised gambling. The Thai government has been exploring the idea of legalising casinos to boost tourism and generate additional revenue for the country.
Melco attracted a total of 21 million visitors last year with its six integrated resorts in Macau, the Philippines, Sri Lanka and Cyprus.
