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Melco Resorts & Entertainment is investing an estimated US$125 million to significantly renovate the Countdown Hotel at City of Dreams in Macau’s Cotai district. This was announced during a recent conference call with analysts after the company posted its third-quarter 2025 earnings, underlining Melco’s continued investment in its Macau property portfolio.
Currently, the Countdown Hotel offers 330 standard rooms but will undergo renovation to turn into a luxurious all-suite residence with approximately 150 high-end suites of more than 1,000 square feet each. According to Melco’s Executive Vice President and Chief Financial Officer, Geoffrey Davis, the renovation has already commenced, and its reopening is targeted for the third quarter of 2026.
Chairman and Chief Executive Lawrence Ho said the redevelopment greatly aligns with the strategic direction of the company to elevate the overall guest experience across City of Dreams. Complementing this hotel transformation, Melco intends to undertake renovations of retail spaces and food and beverage outlets at the precinct for further enhancement of product offerings toward changing market expectations.
Driving Premium Customer Engagement
In July, Melco launched the “Signature Clubhouse” within City of Dreams, a premium mass gaming area designed specifically to attract high-value patrons. This exclusive zone covers everything, from private gaming salons and hair styling services to entertainment facilities, including a Formula One racing simulator, among other bespoke amenities, with the aim of treating discerning customers to a different experience.
The company reopened a dedicated gaming area with 15 tables near a Light Rapid Transit system station in the resort in September. This area is designed to appeal to walk-in visitors with more accessible table minimums, and management reports steady patronage growth.
At Melco’s Studio City resort, also in Cotai, further upscale enhancements introduced a newly expanded high-limit gaming space and four new private gaming salons within the Epic Tower. This move aims to heighten the luxury appeal of the property for premium mass segment customers, consistent with Melco’s overarching strategy to cultivate an elevated gaming environment.
Financial Health and Dividend Prospects
Geoffrey Davis highlighted the company’s successful efforts in reducing pandemic-era debt, describing the progress as “meaningful.” While debt reduction remains the focal point going into 2026, Melco plans to take a more balanced approach to the use of free cash flow. The company announced that it will restart quarterly dividends by the end of next year to reflect confidence in financial stability and future growth.
Review of City of Dreams Manila Stake
Management also provided an update on the strategic review of Melco’s involvement with City of Dreams Manila in the Philippines. CFO Davis explained the process of assessing strategic alternatives is nearing completion with advisor support and is anticipated to conclude by the end of 2025.
He emphasized that this exploration is opportunistic in nature, focused primarily on generating a one-time debt reduction opportunity rather than a strategic withdrawal from the Manila market. The company remains valuation-driven and disciplined in considering offers for this business stake.
Positioning for Growth Through Renovation and Innovation
The renovation of the Countdown Hotel by Melco and related investments across all its hospitality and gaming properties mark a decided effort to reinforce its competitive advantage. Given the rising development of luxury amenities, improvement in the guest experience, and special events treating premium customers, Melco is positioning itself at an accelerating demand in Macau’s leisure market.
The strategic capital allocation and discipline in operations at Melco will be instrumental in gaining momentum over the next year as the company positions itself for sustainable returns and the creation of renewed shareholder value with the transformation of the Countdown Hotel.
Source: GGR Asia
