Published on: February 13, 2026, at 12:32h.
Updated on: February 13, 2026, at 12:32h.
- There was no transaction for City of Dreams Manila.
- Ho mentioned alternatives did not optimize the property’s value.
- Melco may reconsider the situation in the future.
Almost a year after launching a strategic review of its City of Dreams Manila casino hotel, Melco Resorts & Entertainment (NASDAQ: MLCO) has concluded that process.
During its fourth-quarter earnings call on Thursday, CEO Lawrence Ho remarked that the review of options for the gaming venue in the Philippines, which started in February 2025, has come to an end.
“We have finalized our assessment of the strategic options for City of Dreams Manila,” Ho shared with analysts. “Even though we explored various pathways, we didn’t believe any of them would capitalize on the value and potential of the property adequately.”
He expressed optimism about the recovery of business in the Philippines and mentioned the possibility that the operator could revisit options for City of Dreams Manila later.
Melco Shareholders React Positively to Manila Casino News
As of now, Melco’s shares have risen by 3% with trading volumes possibly exceeding daily averages, signifying that investors feel satisfied with the decision to retain City of Dreams Manila.
This is a positive outcome for the company, as some analysts previously evaluated that a sale of the property could yield around $600 million. It remains unclear if this was Melco’s anticipated selling price or a rough estimate. However, had the sale occurred at that valuation, it would have constituted over 25% of its market cap, which currently stands at $2.11 billion.
Throughout this review phase, Melco maintained transparency with analysts and investors about the process’s progression, even though no transaction materialized.
The lack of a deal might stem from a shortage of credible buyers or perhaps an unspoken asking price that was too elevated, although Melco has not commented on either scenario.
Challenges for Melco’s Manila Casino Amid Market Competition
While Manila may not compare to Las Vegas or Macau, it still presents a fiercely competitive casino environment. Currently, City of Dreams seems to be feeling the effects of that competition.
“In the Philippines, the ongoing competitive pressures and industry challenges have continued to affect our performance in the fourth quarter of 2025,” Ho stated during the earnings call. “Nonetheless, we are optimistic about positive trends in the market, which include visa-free travel for Chinese tourists, upgrades to the Manila airport aimed at enhancing international tourism, and adjustments within the online gaming sector.”
In the last quarter of 2025, City of Dreams Manila saw a notable decline in both earnings before interest, taxes, depreciation, and amortization (EBITDA) and sales figures.