Lawrence Ho, the Chairman and CEO of Melco Resorts & Entertainment, says the company has decided not to sell its 50% stake in Philippines integrated resort City of Dreams Manila following completion of a strategic evaluation.
The company had revealed in February 2025 that it was exploring strategic alternatives for City of Dreams Manila and later confirmed it was in discussions with potential buyers.
However, Ho revealed during Melco’s 4Q25 earnings call overnight that the search for a buyer was now concluded with no plans to pursue a sale.
“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 realized,” he explained. “We are confident that business will rebound and we may reevaluate the situation in the future.”
Ho added that although “competitive pressures and industry headwinds” continued to negatively impact City of Dreams Manila in 2025 – GGR was down 26% in the December quarter alone – Melco remains “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.”
Macau capex initiatives on the radar in 2026
Ho told analysts during the 4Q25 earnings call that Melco expected to spend around US$450 million on capex projects in 2026, with the majority of that destined for its trio of Macau resorts.
The largest project will be the ongoing renovation of Countdown Hotel, with another US$100 million still to be poured into it.
“We are on track to progressively start opening in 2026,” Ho said. “The completed hotel is expected to introduce a truly distinctive experience and set a new benchmark in Macau.”
Melco previously announced that the transformation of Countdown Hotel would see the tower rebranded and its existing 330 standard hotel rooms converted into 150 high-end suites.
Ho also revealed overnight that the company has started a revamp of the retail area at City of Dreams Macau and has plans to upgrade the property’s F&B offerings, “continuing to further enhance our product quality”.
