City of Dreams Sri Lanka opened on Saturday in the capital city of Colombo. The $1.2 billion casino complex, promoted as the first integrated resort in South Asia, is a joint venture of Sri Lankan conglomerate John Keells Holdings (JKH) and global casino operator Melco Resorts & Entertainment.
With two luxury hotels, a 16,700 sqm gaming floor and multiple bars, restaurants, lounges and nightlife spaces, City of Dreams represents the largest private investment in Sri Lankan history. It will capitalise on its location within four hours of India, China, Southeast Asia and the Middle East and draw a cross-section of international patrons, said JKH Chairman Krishan Balendra.
To further boost tourism and recover from the 2022 economic crisis, Sri Lanka plans to extend its free visa policy to 40 more countries, reports the Times of India.
‘Ultra high-end’ appointments are touted
Phase 1 of City of Dreams, including the 687-room Cinnamon Life hotel, opened last October and has already built a steady following. “Bookings as of early August are significantly ahead of last year’s levels,” portending a strong winter season, said Balendra.
Phase 2 added the casino and a 113-key Nüwa hotel to the Cecil Balmond-designed contemporary complex. The IR also offers the largest conference centre in the port city, with a capacity of 5,000.
“Melco’s ultra high-end luxury-standard hotel and casino, together with its global brand and footprint, will strongly complement the MICE, entertainment, shopping, dining and leisure offerings” at City of Dreams, JKH told shareholders in its annual report in May.
“The collaboration with Melco, including access to the technical, marketing, branding and loyalty programmes, expertise and governance structures, will be a boost for not only the integrated resort of the group but a strong show of confidence in the tourism potential of the country.”
Melco also operates IRs in Macau, the Philippines and Cyprus, all under the City of Dreams brand. In March, the Hong Kong-listed operator confirmed it had received a 20-year gaming licence from the Sri Lankan government.
Ho: Development to ‘elevate Sri Lanka’s global profile’
Melco invested approximately $125 million to develop the casino. In comments last fall, Melco Chairman and CEO Lawrence Ho called it a “small wager” with the promise of strong returns: up to $250 million in gross gaming revenue per year.
Speaking to reporters at the grand opening, Ho said Sri Lanka “can be to India what Macau is to China”.
“This project is about more than creating a luxury resort,” said Ho. “It’s about helping to elevate Sri Lanka’s global profile and contributing to its tourism economy.” He called City of Dreams “a symbol of possibility and a celebration of Sri Lanka’s potential as a world-class destination”.
In an investors’ note Friday, CBRE Equity Research analyst John DeCree called the property a “unique asset-light opportunity for Melco that could possibly be replicated in other markets. However, City of Dreams will be a new product for the market and the ramp period will take time.”
Balendra described the strategy as “creating a tourism magnet that draws high-value visitors, boosts the urban economy and elevates Colombo’s international brand”. He expects the new IR to have the same positive impact on Colombo that Marina Bay Sands and Resorts World Sentosa had in Singapore.
Melco Resorts boss Lawrence Ho said the $1.2 billion IR that opened Saturday will “be to India what Macau is to China”.