Melco has decided to shelve plans to sell off its interest in City of Dreams Manila, after concluding its “evaluation of strategic alternatives”.
According to Melco Chairman Lawrence Ho, “we did not feel that any of those options would allow the value and potential of the property to be fully realized. We are confident that business will rebound and we may reevaluate the situation in the future”.
In February of last year, Melco had announced that it was evaluating such “strategic alternatives’. The landlord of the City of Dreams property, Philippine-listed Belle Corporation quickly clarified that it did not plan to buy out Melco’s interests in the property and was instead looking to invest in Clark.
Results fail to impress
For the fourth quarter of 2025, Melco indicated that its City of Dreams’ operating income was down significantly year-on-year to $17.82 million, compared to $34.09 million 4Q24. Adjusted property EBITDA also fell from $56.79 million to $33.05 million in 4Q25. Melco’s share of this was $18 million.
The group operates 265 tables and 2,264 gaming machines at City of Dreams Manila.
During the quarter, the group saw VIP and mass play drop, with total gross gaming revenue down by 26 percent to $110 million.
VIP GGR fell by 40 percent yearly to $21 million, while mass dropped by 28 percent to $42 million. Slots GGR also contracted by 17 percent, to $47 million. VIP rolling chip at the property was down 39 percent yearly to $469 million, with the win rate down 4 basis points to 4.47 percent. Mass rolling chip was down 23 percent to $129 million, with the mass table hold falling 181 basis points yearly to 32.4 percent.
Melco’s Chairman noted that “competitive pressures and industry headwinds continued to impact our performance in 2025,” but highlighted that the group is “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 rationalization of the online gaming market”.
Melco execs indicated that the company plans opex of $40 million for City of Dreams Manila this year.
