Philippine real estate company Belle Corp has stated that acquiring full ownership of City of Dreams Manila is not currently part of its plans. The resort is co-owned through a joint venture with Melco Resorts & Entertainment.
In a 3 March filing with the Philippine Stock Exchange, Belle Corp confirmed it has no plans to acquire full ownership of City of Dreams Manila. The integrated resort (IR), valued at $1 billion (PHP57.4 billion/£773 million/€921.5 million), opened in February 2015 in Manila’s Entertainment City and is co-owned with Melco Resorts & Entertainment.
Melco, one of Macau’s Big Six gaming concessionaires, is reportedly considering a sale to raise capital for a potential casino project in Thailand.
The Thai government is currently amending legislation to establish five "entertainment complexes" with integrated gaming. In January, shortly after cabinet approval, Melco became the first global casino operator to open an office in Bangkok.
Belle leaves the door open for an acquisition
In its statement, Belle Corp said it “is not in a position to confirm the accuracy” of reports regarding Melco’s potential exit from the Philippines. However, it clarified that “any buyout of Melco’s interests in COD Manila is not part of Belle’s plans for the immediate future.” This wording suggests Belle could reconsider if the price is favorable.
No official sale price has been disclosed, but financial news site Merkado Barkada, cited by the Philippine Star, suggested it might be too expensive for Belle. The report speculated that Belle may have waived its right of first refusal to let Melco face the open market, potentially forcing the company back to the negotiation table.
As the co-licensee and landowner of City of Dreams Manila, Belle Corp remains the most likely buyer if Melco decides to sell.
“Asset-light strategy” a prelude to Thai entry
During a fourth-quarter earnings call on 27 February, Melco chairman and CEO Lawrence Ho outlined the company’s strategy to adopt an "asset-light" approach. Ho emphasized the goal of optimizing investments and reallocating resources to improve financial flexibility, strengthen the balance sheet, and support long-term growth initiatives.
In Q4 2024, City of Dreams Manila reported total operating revenue of $591.1 million, an increase from $559.8 million in 2023.
Adjusted EBITDA for the property reached $140.1 million, down from $166.2 million the previous year. Melco attributed the decline to higher operating costs, largely driven by increased staffing levels aimed at improving service quality and overall performance.
