Melco International Revenue Rises as REM Project Advances

Melco International Development’s first-half revenue rose modestly as the company continues to focus on its hospitality projects, particularly the development of the REM hotel at City of Dreams in Macau. The company reported net revenues of HK$20.50 billion for the six months ending June 30, 2026, a slight increase from HK$19.96 billion in the same period of 2025, attributable to improved gaming performance.

The primary focus remains the expansion of its integrated resort offerings. The REM hotel, positioned as a premium hospitality offering, represents a significant investment in City of Dreams. Beyond Macau, City of Dreams Manila and City of Dreams Mediterranean in Cyprus showed year-on-year growth, while operations in Sri Lanka continued a steady ramp-up. These diversified holdings are intended to mitigate risks associated with concentrated exposure to any single market.

Financially, profit attributable to owners of the company decreased to HK$309.5 million for the period, compared to HK$350.8 million in the first half of 2025. The company also secured a significant financial commitment, extending the maturity date of its MN1 2020 Revolving Facilities to June 2031 and increasing the total commitment to HK$21.676 billion. This extension suggests continued access to capital for ongoing projects and operations. A drawdown of HK$3.266 billion from this facility was used in part to fund an intra-group acquisition by Melco Resorts.

While the report notes ongoing geopolitical uncertainties impacting operations in Cyprus, specifically related to restrictions on customers from Russia and the conflict in Ukraine, the Group is currently unable to estimate the financial impact. The company has also enacted a new Cyprus Corporate Income Tax rate of 15% effective January 1, 2026. The ongoing development of REM and the secured credit facility underscore Melco International’s commitment to expanding its presence within the Asian gaming and hospitality sector.

Melco Resorts generated Adjusted Property EBITDA of US$684.8 million for the six months ended 30 June 2026, compared with US$718.7 million for the same period in 2025. A key metric for assessing the underlying performance of the Group’s core operations, this represents a decline in profitability year-over-year.