Melco to operate gaming and hotel rooms at City of Dreams Sri Lanka

Melco to operate gaming and hotel rooms at City of Dreams Sri Lanka

Melco Resorts & Entertainment has partnered with John Keells Holdings to join the IR project.

Sri Lanka.- Melco Resorts & Entertainment Limited has announced a partnership with John Keells Holdings to develop a US$1bn integrated resort (IR) in central Colombo. City of Dreams Sri Lanka, previously dubbed Cinnamon Life Integrated Resort, will be the first IR in Sri Lanka and South Asia. It will have 800 hotel rooms, retail, food and beverage outlets and MICE facilities.

The Government of Sri Lanka has awarded Melco’s wholly-owned local subsidiary a 20-year casino licence. The company will operate the gaming area at City of Dreams Sri Lanka, with an initial investment of approximately US$125m. Melco will also manage the top five floors of the hotel under its Nuwa brand, which will represent 113 of the 800 total hotel rooms.

Melco and John Keells have agreed on all key commercial arrangements, with the fit-out of the casino area expected to begin soon. The non-gaming facilities, including the 687-room Cinnamon Life hotel to be managed by John Keells, are in the final stages of completion and will begin operations in the third quarter of 2024. 

Casino operations are expected to commence in mid-2025. There is potential for further expansion of the gaming facilities, subject to performance and market conditions.

See also: Moody’s assigns Ba3 rating to Melco Resorts’ proposed senior notes

Lawrence Ho, chairman and chief executive officer of Melco, said, “We are thrilled to be part of this landmark development in Sri Lanka and to be in partnership with John Keells. We believe Sri Lanka has immense potential and this opportunity complements our existing portfolio of properties.

“Furthermore, City of Dreams Sri Lanka is expected to serve as a catalyst for stimulating tourism demand and promoting economic growth in Sri Lanka, drawing inspiration from the successful examples set by similar integrated resorts in other jurisdictions. We will continue to work closely with our esteemed partners and the Sri Lankan Government to ensure the success of this venture, and we expect to make a significant and positive impact on the local community and economy.”

See also: Sri Lanka updates casino licence fees

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