Melco Crown Entertainment’s (MPEL) Studio City is an integrated resort that is under development in the Cotai region of Macau. Expected to open in mid-2015, Studio City will expand MPEL’s exposure to the mass market segments and further diversify Macau’s leisure and tourism offerings.
Upon completion, Studio City will include significant gaming capacity, five-star hotel offerings, entertainment, retail, and food and beverage outlets to cater to a diverse range of customers. Melco Crown Entertainment’s preliminary estimates suggest that the design and construction cost for the first phase of Studio City will be ~$2.3 billion.
City of Dreams Manila
Starting operations in December 2014, City of Dreams Manila is an integrated resort that offers about 380 gaming tables, 1,700 slot machines, and 1,700 electronic table games.
City of Dreams Manila will diversify MPEL’s exposure to the rapidly developing Asian gaming and entertainment industry. Located on an approximately 15.3-acre site at the gateway of Entertainment City, Manila, City of Dreams is close to Metro Manila’s international airport and central business district.
City of Dreams fifth tower
Melco Crown Entertainment’s City of Dreams fifth tower is in progress and is anticipated to open in the first half of 2017. In August 2014, City of Dreams officially opened SOHO, a lifestyle food, beverage, and entertainment facility. City of Dreams is also expanding its luxury retail offering, which should be operational in 2016.
Melco Crown Entertainment’s board of directors approved the implementation of a $500 million stock repurchase program in August 2014. This would enable the company to return surplus capital to the shareholders while retaining flexibility to fund its current operations and future development pipeline.
Companies like Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN) are also developing casino resorts in the Cotai region. ETFs such as the VanEck Vectors Gaming ETF (BJK) invest in these casino companies.