Potential buyers emerge for Melco’s stake in City of Dreams Manila

The company’s executive vice president and chief financial officer said potential buyers would be narrowed down for a bidding process.

The Philippines.- Geoff Davis, Melco’s executive vice president and chief financial officer, has revealed that the company is in discussions with potential buyers for its stake in City of Dreams Manila. Speaking on a conference call with analysts following the release of first-quarter 2025 financial results, Davis said interested parties were signing non-disclosure agreements and reviewing information in a virtual data room. He said potential buyers would be narrowed down for a bidding process.

In February, Melco announced it was evaluating potential strategic alternatives for City of Dreams Manila with CBRE Capital Advisors and Moelis & Company as financial advisors.

Also during the call, Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts, acknowledged that increased competition in the Philippine market has affected the performance of the City of Dreams complex.

For the first quarter of 2025, the complex saw operating revenue of US$101.6m, down 8.22 per cent year-on-year and 24.06 per cent sequentially. EBITDA was US$30.1m, down from US$37.8m in the same period in 2024 due to softer mass market performance.

The gaming machine handle was US$1.01bn, compared with US$1.13bn in the first quarter of 2024. The win rate was 5.1 per cent compared with 5 per cent. Non-gaming revenue was US$26.6m, compared with US$28.8m.

Melco Resorts also manages casinos in Macau and Cyprus and has a new location in the works in Sri Lanka. The company reported operating revenue of US$1.23bn for the first quarter of the year, a rise of 11 per cent year-on-year amid improved performance in both gaming and non-gaming operations.

The group’s EBITDA was US$341m compared with US$298.8m in 2024. The net loss attributable to noncontrolling interests was US$4.8m, compared to US$14.6m, the majority relating Studio City and City of Dreams Mediterranean and Other.