International casino operator Melco Resorts & Entertainment Ltd says it has terminated the “evaluation of the strategic alternatives” in relation to its involvement in the operations of the City of Dreams Manila casino resort (pictured), in the Philippine capital.
“We’ve concluded our evaluation of the strategic alternatives for City of Dreams Manila,” said Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts.
When it announced in February last year that it was considering options for City of Dreams Manila, Melco Resorts said it wanted to shift to an “asset-light” model.
“Although we considered various alternatives, we did not feel that any of those options would allow the value and potential of the property to be fully realised,” Mr Ho stated on Thursday.
He added: “We’re confident that business will rebound and we may reevaluate the situation in the future.”
Mr Ho made the remarks in a conference call with investment analysts, following the firm’s announcement of its fourth-quarter 2025 results.
Melco Resorts posted net income of US$60.6 million in the final quarter of 2025, compared to a US$20.3-million loss a year earlier. That was on total operating revenues that grew by 8.6 percent year-on-year, to just over US$1.29 billion.
At City of Dreams Manila, fourth-quarter 2025 operating revenues were US$100.2 million, down from US$133.8 million in the prior-year period. The property’s adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) declined to US$33.1 million, from US$56.8 million in fourth-quarter 2024.
Mr Ho said on the call: “In the Philippines, competitive pressures and industry headwinds continued to impact our performance in the fourth quarter of 2025.”
“However, we’re encouraged by the positive developments in that market, including visa-free travel for Chinese nationals, upgrades to the Manila airport to facilitate increasing international tourism, and rationalisation of the online gaming market,” he added.
Aside from the Philippines, Melco Resorts runs casinos in Macau, one in the Philippine capital Manila, and several in the Republic of Cyprus. In the third quarter last year, it launched a new casino in the Sri Lankan capital, Colombo.
The CEO stated: “In Sri Lanka, we continue to focus our efforts to progressively ramp up operations and have seen promising green shoots so far in 2026.”
Phased launch for Countdown
On the call, Mr Ho said the company’s efforts to enhance the customer experience “have proven to be a successful strategic focus”.
“We’ve had a strong start to 2026 in the Macau market, with GGR [gross gaming revenue] up by 24 percent year-over-year, and our market share increasing so far in the first quarter of 2026,” the executive said.
He added: “Chinese New Year looks strong with higher yield in cash ADRs [average daily revenue] compared to 2025.”
Mr Ho also said the group has a “pipeline of new initiatives” to be implemented in 2026 “to further differentiate” its offerings, with the “largest project being the opening of the renovated Countdown Hotel”.
“We’re on track to progressively start opening in the third quarter of 2026,” he added. “The completed hotel is expected to introduce a truly distinctive experience and set a new benchmark in Macau.”
The CEO said additionally that the firm “started a revamp of the retail area at City of Dreams” in Macau, and plans to “upgrade” the food and beverage offerings at the complex.
Geoffrey Davis, Melco Resorts’ executive vice president and chief financial officer (CFO), said on Thursday’s call that the group expects its operational expenditure – excluding the House of Dancing Water show – “to come in at approximately US$3.2 million” per day in the first quarter this year, up from circa US$3.1 million in the final quarter of 2025.
That is due to “increased marketing activity around Chinese New Year and new brand campaigns across our Macau properties,” Mr Davis noted.
The CFO also said the trademarks licence fee that Melco Resorts pays to its parent, Hong Kong-listed Melco International Development Ltd, will increase from the first quarter of 2026 to 1.5 percent of the gross revenues of City of Dreams in Macau, excluding the Grand Hyatt hotel, up from 1 percent in 2025.
“The agreement does not include an annual cap, but the total fees for full-year 2025 amounted to approximately US$33 million, dramatically lower than those of our peers,” Mr Davis added.
