Melco Resorts explores 'strategic options' for City of Dreams Manila

Nasdaq-listed casino operator Melco Resorts & Entertainment Ltd. has announced it is considering “potential strategic alternatives” for City of Dreams Manila, its luxury casino and resort complex in the Philippines.

The company has hired CBRE Capital Advisors, Inc. and Moelis & Company LLC to explore possible options for the property, though no deal is guaranteed, according to a report by SiGMA.

City of Dreams Manila, operated by Melco Resorts Leisure (PHP) Corp., has been experiencing declining revenue. In 2024, its operating income fell 19%, dropping to $89.1 million from $110.14 million in 2023. Additionally, the average daily hotel rate decreased from $177 to $164 per night, while revenue per available room 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 the gaming license for integrated resorts in the country.

The decline in revenue comes as the Philippine gaming industry undergoes a transformation, with a growing number of players turning to online gambling platforms, the report said. 

In response, the Philippine Amusement and Gaming Corp. (Pagcor) has been adjusting its strategy, shutting down unprofitable casinos to adapt to the shifting market. 

Despite this, Pagcor President and CEO Alejandro Tengco expects gross gaming revenue (GGR) to rise from P410.5 billion in 2024 to P450 billion – P480 billion in 2025, with e-gaming poised for further growth.

As it evaluates its Manila operations, Melco is also looking to expand into Thailand, betting on the country’s booming tourism sector and potential gambling legalization.

Melco Chairman and CEO Lawrence Ho has called Thailand a prime destination for investment and confirmed the company has opened an office in Bangkok to explore opportunities. 

Last year, Melco attracted 21 million visitors across its six integrated resorts in Macau, the Philippines, Sri Lanka, and Cyprus.