October 09, 2013

Melco rebrands integrated resort, raises capex

In a disclosure yesterday, Melco Crown (Phils) Resorts Corp (MCP), the local unit of Melco Crown Entertainment Limited, announced it has rebranded the integrated resort complex it is developing in the country as “City of Dreams Manila” from Belle Grande Manila Bay.

BusinessWorld also reported today that Melco has raised its planned overall capex to US$1.3b from US$1.b after the regulator allowed it to expand its gaming facilities. City of Dreams Manila is slated to open next year with a 260-room premium hotel under the Crown Towers franchise.

Our take: We believe that the rebranding bodes well for the planned Philippine integrated resort complex as this aligns the brand with Melco’s flagship “City of Dreams” unit in Macau and can help promote patronage among Melco’s international clients.

We also view positively MCP’s success in securing approval to increase its hotel and gaming facilities, including 365 tables (from 242) and 3,360 gaming tables from (1,450) as these should render the company more competitive and ensure ample room for growth. - WealthSec