Melco Announces Exploration of Strategic Alternatives in Relation to City of Dreams Manila
Melco Resorts & Entertainment (Nasdaq: MLCO) announced it is exploring strategic alternatives for City of Dreams Manila, its integrated resort facility in the Philippines. The company has engaged CBRE Capital Advisors and Moelis & Company as financial advisors to assist in the evaluation process.
The facility is currently managed and operated by Melco Resorts Leisure (PHP) , a Melco subsidiary, through an operating agreement with PremiumLeisure and Amusement, Inc. The company emphasized that no decision has been made regarding any strategic alternative, and there is no guarantee that this exploration will result in any transaction.
Melco Resorts & Entertainment (Nasdaq: MLCO) ha annunciato di star esplorando alternative strategiche per City of Dreams Manila, la sua struttura integrata di resort nelle Filippine. L'azienda ha coinvolto CBRE Capital Advisors e Moelis & Company come consulenti finanziari per assistere nel processo di valutazione.
La struttura è attualmente gestita e operata da Melco Resorts Leisure (PHP), una sussidiaria di Melco, attraverso un accordo operativo con Premium Leisure and Amusement, Inc. L'azienda ha sottolineato che non è stata presa alcuna decisione riguardo a eventuali alternative strategiche e non c'è alcuna garanzia che questa esplorazione porti a una transazione.
Melco Resorts & Entertainment (Nasdaq: MLCO) anunció que está explorando alternativas estratégicas para City of Dreams Manila, su instalación de resort integrado en Filipinas. La compañía ha contratado a CBRE Capital Advisors y Moelis & Company como asesores financieros para ayudar en el proceso de evaluación.
La instalación es actualmente gestionada y operada por Melco Resorts Leisure (PHP), una subsidiaria de Melco, a través de un acuerdo operativo con Premium Leisure and Amusement, Inc. La empresa enfatizó que no se ha tomado ninguna decisión respecto a alternativas estratégicas, y no hay garantía de que esta exploración resulte en alguna transacción.
멜코 리조트 & 엔터테인먼트 (Nasdaq: MLCO)는 필리핀의 통합 리조트 시설인 시티 오브 드림스 마닐라에 대한 전략적 대안을 모색하고 있다고 발표했습니다. 회사는 평가 프로세스를 지원하기 위해 CBRE 캐피탈 어드바이저스와 모엘리스 & 컴퍼니를 재무 자문으로 참여시켰습니다.
이 시설은 현재 멜코의 자회사인 멜코 리조트 레저(PHP)에 의해 관리 및 운영되고 있으며, 프리미엄 레저 및 오락 주식회사와의 운영 계약을 통해 이루어지고 있습니다. 회사는 전략적 대안에 대한 결정이 내려지지 않았으며, 이 탐색이 거래로 이어질 것이라는 보장이 없다고 강조했습니다.
Melco Resorts & Entertainment (Nasdaq: MLCO) a annoncé qu'elle explore des alternatives stratégiques pour City of Dreams Manila, sa structure de complexe intégré aux Philippines. L'entreprise a engagé CBRE Capital Advisors et Moelis & Company en tant que conseillers financiers pour aider dans le processus d'évaluation.
La structure est actuellement gérée et exploitée par Melco Resorts Leisure (PHP), une filiale de Melco, par le biais d'un accord d'exploitation avec Premium Leisure and Amusement, Inc. L'entreprise a souligné qu'aucune décision n'a été prise concernant d'éventuelles alternatives stratégiques, et il n'y a aucune garantie que cette exploration aboutisse à une transaction.
Melco Resorts & Entertainment (Nasdaq: MLCO) hat angekündigt, dass es strategische Alternativen für City of Dreams Manila, seine integrierte Resort-Anlage auf den Philippinen, prüft. Das Unternehmen hat CBRE Capital Advisors und Moelis & Company als Finanzberater engagiert, um den Bewertungsprozess zu unterstützen.
Die Anlage wird derzeit von Melco Resorts Leisure (PHP), einer Tochtergesellschaft von Melco, durch einen Betriebsvertrag mit Premium Leisure and Amusement, Inc. verwaltet und betrieben. Das Unternehmen betonte, dass keine Entscheidung über strategische Alternativen getroffen wurde und es keine Garantie dafür gibt, dass diese Erkundung zu einer Transaktion führen wird.
- Strategic review could potentially unlock shareholder value
- Professional financial advisors engaged to evaluate options
- Uncertainty around future of major Manila asset
- No guarantee of successful transaction outcome
Insights
Melco's announcement regarding strategic alternatives for City of Dreams Manila represents a potentially significant portfolio optimization move that warrants investor attention. This development aligns with the company's recent focus on balance sheet deleveraging and strategic capital allocation following pandemic-related disruptions.
City of Dreams Manila, which operates under a management agreement with local partner Premium Leisure Corp, contributes approximately 10-15% to Melco's overall EBITDA based on historical performance. The Philippines gaming market has demonstrated robust post-pandemic recovery, with GGR approaching pre-pandemic levels, potentially making this an opportunistic time to explore monetization options.
Several strategic rationales could be driving this exploration:
- Debt reduction to strengthen Melco's financial position amid higher interest rates
- Capital redeployment toward higher-return opportunities in Macau or Cyprus
- Simplification of corporate structure to enhance operational focus
- Response to intensifying competition in Manila from Okada Manila, Solaire, and Resorts World
The engagement of two prominent financial advisors (CBRE and Moelis) suggests Melco is conducting a comprehensive review that could include outright sale, partial stake sale, or operating restructuring. Potential interested parties might include regional gaming operators seeking Philippines exposure, local conglomerates, or financial investors attracted to gaming cash flows.
Any transaction would require navigating Philippines regulatory frameworks, including PAGCOR oversight and foreign ownership restrictions. The timing of this announcement, coming as Philippines tourism and gaming metrics strengthen, may indicate Melco believes it can maximize value in the current market environment.
MACAU, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today announced that it is evaluating potential strategic alternatives in relation to City of Dreams Manila. Melco Resorts Leisure (PHP) Corporation (“Melco Resorts Leisure”), a subsidiary of Melco, manages and operates City of Dreams Manila pursuant to an operating agreement entered into by, among others, Melco Resorts Leisure, certain other subsidiaries of Melco and PremiumLeisure and Amusement, Inc.
Melco has retained CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to assist in the process of exploring potential strategic alternatives for City of Dreams Manila.
No decision has been made regarding any strategic alternative and there can be no assurance that the exploration of potential strategic alternatives will result in any transaction. Melco does not intend to comment on or provide updates in relation to this process unless and until it determines that further disclosure is appropriate or required.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) changes in the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (ii) local and global economic conditions, (iii) capital and credit market volatility, (iv) our anticipated growth strategies, (v) risks associated with the implementation of the amended Macau gaming law by the Macau government, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.
About Melco Resorts & Entertainment Limited
The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company operates City of Dreams Mediterranean in Limassol in the Republic of Cyprus (www.cityofdreamsmed.com.cy). The Company also continues to operate three satellite casinos in other cities in Cyprus (the “Cyprus Casinos”). For more information about the Company, please visit www.melco-resorts.com.
The Company is majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.
For the investment community, please contact:
Jeanny Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: jeannykim@melco-resorts.com
For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com
FAQ
What strategic alternatives is Melco (MLCO) exploring for City of Dreams Manila?
Who currently operates City of Dreams Manila under MLCO?
Will MLCO's strategic review definitely result in a transaction for City of Dreams Manila?
Which financial advisors has MLCO hired for the City of Dreams Manila review?
