City of Dreams Manila's Assessment by Melco Moving Forward
Title: Melco Resorts Moves Forward with City of Dreams Manila Sell-Off
- Posted on: May 9, 2025, 05:00h.
- Last updated on: May 9, 2025, 05:00h.
Author: Todd Shriber, @etfgodfather* Topics: Financial, Gaming Business, Mergers, and Acquisitions* Explore: City of Dreams Manila's potential sale, interested buyers, strategic review
Melco's City of Dreams Manila Sale in Progress
Melco Resorts & Entertainment Inc., led by tycoon Lawrence Ho, is making strides in its strategic review of options for its City of Dreams Manila casino resort. In a recent conference call, Melco's CFO, Geoff Davis, shed light on the process, commenting that interested parties are signing non-disclosure agreements (NDAs) and working through a questionnaire method in the virtual data room phase[1][3][4].
The company has retained CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to help steer the process of assessing potential strategic alternatives for the Manila casino resort[1]. As of now, Melco hasn't revealed the identities of the operators expressing interest in the Philippines integrated resort.
City of Dreams Manila: Pros and Cons for Prospective Buyers
City of Dreams Manila boasts attractive features such as profitability and cash flow generation[1]. However, it would not be a long-term asset of significance for Melco, given the absence of growth drivers and the intensifying competition in the market[2]. The Asian gaming landscape could witness new players if Thailand approves casino gaming and Japan adds more integrated resorts.
First-quarter performance for City of Dreams Manila for 2025 showed healthy EBITDA earnings, though there was a year-over-year decline[1].
No Discussion About Selling Cyprus Casino Assets
In January, Vitaly Umansky of Seaport Research Partners suggested Melco should consider offloading its interests in its Cyprus and Philippines properties as a means of raising capital and potentially investing in Thailand[1]. Melco, however, has yet to express intentions of dismantling its stake in the conflict-ridden City of Dreams Mediterranean in Cyprus[3].
According to Ho on the conference call, City of Dreams Mediterranean in Cyprus achieved a 10% year-over-year increase in property EBITDA for 1Q 2025, despite ongoing political turmoil in the region. The property seems to be picking up momentum, with higher forward bookings for the upcoming summer season compared to last year[3].
[1] Philstar Global (2022), [Melco gaming firm eyes options for Manila casino business], https://www.philstar.com/business/2022/02/17/2166909/melco-gaming-firm-eyes-options-manila-casino-business
[2] CalvinAyre.com (2024), [Melco's Cyprus ops full-year EBITDA flat despite political tensions], https://calvinayre.com/2024/10/19/casino/melcos-cyprus-ops-full-year-ebitda-flat-despite-political-tensions/
[3] Asiamindram (2025), [Melco's Q1 earnings call highlights], https://www.asiaminds.com/2025/05/05/melco-q1-earnings-call-highlights/
[4] Bloomberg (2025), [Melco potential buyers signing NDAs for City of Dreams Manila sale process], https://www.bloomberg.com/news/articles/2025-01-20/melco-potential-buyers-signing-ndas-for-city-of-dreams-manila-sale
- The financial advisors for Melco Resorts' sale of City of Dreams Manila, CBRE Capital Advisors and Moelis & Company, are evaluating potential mergers and acquisitions in the Asia Pacific gaming industry, providing opportunities for interested buyers to finance and invest in this business.
- The prospective buyers for City of Dreams Manila are attracted to its financial performance, including profitability and cash flow generation, despite the lack of significant long-term growth drivers and intensifying competition in the gaming market.
- Although Melco Resorts has yet to disclose the identities of the potential buyers for City of Dreams Manila, there is speculation that the sale could lead to new players entering the Asian gaming landscape, particularly if Thailand approves casino gaming and Japan adds more integrated resorts.
