Melco Crown spends half of $680M buget for casino project

MANILA, Philippines - Macau-based casino giant Melco Crown Entertainment Ltd. has poured in majority of its committed $680-million capital spending for its integrated casino project in the Philippines.

City of Dreams Manila, which is slated to open late this year, would cater to the Asian middle-class seeking a more sophisticated and broader leisure and entertainment experience, the company said.

In a report to shareholders, Melco Crown said it spent $359.85 million last year and $817,000 in 2012 for the construction of its first casino outside Macau.

For instance, local unit Melco Crown (Philippines) Resorts Corp. paid $32 million in rent to Belle Corp., the leisure arm of the SM conglomerate and the builder of the casino complex.

“The total budget for the City of Dreams Manila project up to the time of opening is estimated to be approximately $680 million, consisting of funds primarily for capital expenditures, working capital for initial opening and other pre-opening expenses,” Melco Crown said.

“Beyond Macau, our development in the Philippines has been progressing well,” said Melo Crown CEO Lawrence Ho.

“City of Dreams Manila, with its broad collection of first-class brands, including lifestyle and entertainment attractions, will meaningfully expand the Philippines appeal to a broader range of customers both within the Philippines and throughout the region,” Ho said.

City of Dreams Manila would offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. 

The integrated casino project is Melco Crown’s first gaming foray outside Macau where it operates the City of Dreams and Altira Macau casinos. City of Dreams Macau is famous for its world-class gaming and entertainment offerings, including The House of Dancing Water Show and party place Club Cubic.

“City of Dreams Manila meaningfully expands our regional offerings designed to cater to the needs and ever-growing demands of the increasingly important Asian middle-class which continues to seek a more sophisticated and broader leisure and entertainment experience,” Melco Crown said.

In January, Melco Crown announced that the upscale, 321-room Nobu Hotel of Hollywood actor Robert De Niro and Japanese chef Nobu Matsuhisa would be the second of three hotels that would operate in the $1.3-billion City of Dreams Manila. Australian billionaire James Packer’s Crown Towers brand would operate a six-star, 260-room hotel in the integrated casino.

“We will continue to announce more ground-breaking signature entertainment attractions at City of Dreams Manila as we move closer to opening the project,” Ho said.

City of Dreams would be the second casino complex to open at the Philippine Amusement and Gaming Corp.’s 120-hectare Entertainment City which is groomed to become the Philippines’ version of the Las Vegas strip. In March last year, port mogul Enrique Razon opened the $1.2-billion Solaire Casino & Resort.