The sale plan of the Philippines integrated resort "City of Dreams Manila" has been officially shelved. Lawrence Ho, Chairman and CEO of Melco Entertainment, revealed in the latest financial report meeting that the company has completed a strategic assessment and decided to continue holding 50% of the shares and stop looking for buyers. Simply put, they feel that selling now is not worthwhile, and it's better to wait for the market to recover. Despite a 26% decline in gambling revenue in December 2025, a series of positive developments such as visa-free policies for Chinese tourists, upgrades to Manila airport, and integration of the online gambling market have given Melco confidence in recovery. At the same time, the company also announced that it will invest $450 million in 2026, mainly for the renovation and upgrading of the three major resorts in Macau. Want to understand the latest interpretation of capital movements in Asian integrated resorts? PASA official website continues to track industry dynamics.
First, Strategic Shift: Why "not selling" now?
At the beginning of 2025, Melco publicly stated that it was exploring strategic options for "City of Dreams Manila" and had contacted potential buyers. However, after a year of assessment, the conclusion is: no sale plan can truly unleash the potential value of the project.
Lawrence Ho candidly stated in the conference call that although the industry still faced competitive pressures in 2025, especially with a 26% month-on-month decline in GGR in December, several positive signals led the company to decide to "wait a bit longer":
The implementation of visa-free policies for Chinese tourists is expected to accelerate the return of international visitors
The completion of Manila airport upgrades enhances entry convenience
Progress in the integration of the online gambling market is forming a compliant ecosystem
"We may still reassess the sale at some future point," Lawrence Ho said, "but for now, we choose to hold."
Second, $450 million directed to Macau: Betting on high-end experience upgrades
In contrast to the "halted sale" of the Philippines project, Melco's investment in Macau continues to increase. The capital expenditure budget for 2026 is $450 million, most of which will be directed to the three major resorts in Macau. The largest project is the renovation of Countdown Hotel:
Original 330 standard rooms
Transformed into 150 high-end suites
Expected to open in phases within the year
In addition, the retail area renovation and dining upgrades at "City of Dreams" in Macau are also progressing. Shifting from "competing in room numbers" to "competing in guest spending", Melco is clearly betting on the speed of high-end customer return.
Third, the signal released: The Philippine gambling industry enters a "waiting window period"
Overall, Melco's decisions have conveyed several clear signals to the market:
•Not in a hurry to monetize in the short term — even though the December data looks bad, the company still believes in fundamental recovery.
•International tourists are a key variable — visa-free policies, airport upgrades, and the extent of flight recovery directly determine the recovery slope.
•Capital is primarily directed to Macau — while the Philippine project is "halted but not increased in capital," Macau is genuinely investing in experience upgrades.
For investors, this means that the Philippine gambling industry is entering a "waiting window period": policy dividends have been implemented, visitor flow has not yet fully materialized, but the patience of leading companies is accumulating. Whoever endures the last mile will seize the next wave of growth dividends.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel:https://t.me/pasa_news
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