Melco has announced a partnership with John Keells Holdings to construct “a state-of-the-art” integrated resort in central Colombo, Sri Lanka, with an estimated investment exceeding US$1 billion.
Melco, one of Macau’s six gaming concessionaires, also runs properties and operations in the Philippines and Cyprus. Notably, last July, Melco, spearheaded by mogul Lawrence Ho, inaugurated the City of Dreams Mediterranean resort in Limassol, Cyprus, with an investment totaling €600 million ($662 million).
In Sri Lanka, the partnership with John Keells Holdings, the largest listed conglomerate on the Colombo Stock Exchange, paves the way for City of Dreams Sri Lanka, envisioned as the inaugural integrated resort not only in Sri Lanka but also in South Asia.
The resort aims to provide luxury hospitality and entertainment to the region, offering amenities including 800 hotel rooms, retail outlets, dining options, conference facilities, and more.
Furthermore, Melco has received a 20-year casino license from the Government of Sri Lanka through a local subsidiary, paving the way for the operation of a gaming area within City of Dreams Sri Lanka. The casino section will be managed by Melco and will occupy the top 5 floors of the hotel, operating under the Nuwa brand.
Lawrence Ho, Chairman and Chief Executive Officer of Melco
Lawrence Ho, Chairman and Chief Executive Officer of Melco, said: “We are thrilled to be part of this landmark development in Sri Lanka and to be in partnership with John Keells. We believe Sri Lanka has immense potential and this opportunity complements our existing portfolio of properties.
“Furthermore, City of Dreams Sri Lanka is expected to serve as a catalyst for stimulating tourism demand and promoting economic growth in Sri Lanka, drawing inspiration from the successful examples set by similar integrated resorts in other jurisdictions.”
“We will continue to work closely with our esteemed partners and the Sri Lankan Government to ensure the success of this venture, and we expect to make a significant and positive impact on the local community and economy.”
The announcement coincided with the release of Melco’s quarterly earnings report, showcasing a net income attributable to the operator of $15.2 million for the first quarter of 2024. Total operating revenues surged to $1.11 billion, representing a 55% year-on-year increase.
Melco and John Keells have finalized key commercial arrangements and are set to commence the fit-out of the casino area in the coming months, according to a press statement.
The estimated initial investment in the casino segment is projected to reach approximately $125 million, with expectations for the commencement of casino operations in mid-2025, following the completion of the non-gaming facilities in the third quarter of 2024.