Melco shelves City of Dreams Manila sale after strategic review

The decision was disclosed alongside City of Dreams’ Q4 2025 results.

The Philippines.- Melco has abandoned plans to divest its interest in City of Dreams Manila following the conclusion of a strategic review initiated in February last year. Company chairman Lawrence Ho stated that none of the options considered would have allowed the property’s full value and potential to be realised.

The decision was disclosed alongside City of Dreams’ Q4 2025 results, which showed year-on-year declines. In the quarter, the property generated operating income of US$17.82m, down from US$34.09m in the same period last year. Adjusted property EBITDA fell from US$56.79m to US$33.05m, with Melco’s attributable share amounting to US$18m.

The quarter saw weaker performance in both VIP and mass play, driving a 26 per cent year-on-year drop in GGR to US$110m. VIP GGR fell 40 per cent to US$21m, while mass GGR dropped 28 per cent to US$42m. Slot GGR decreased 17 per cent to US$47m. VIP rolling chip volume fell 39 per cent to US$469m and mass rolling chip declined 23 per cent to US$129m.

Ho said 2025 results were pressured by competition and industry-wide challenges, but that Melco remains optimistic amid visa-free entry for Chinese tourists and airport expansions in Manila.

While Melco has budgeted US$40m in operating expenses for City of Dreams Manila in 2026, the chairman confirmed that the group could reevaluate its decision to sell its stake at a later stage.

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The decision was disclosed alongside City of Dreams’ Q4 2025 results. The Philippines.- Melco has abandoned plans to divest its interest in City of Dreams Manila following the conclusion of a strategic review initiated in February last year. Company chairman Lawrence Ho stated that none of the options considered would have allowed the property’s full…