Melco Resorts & Entertainment’s City of Dreams Mediterranean in Cyprus has navigated recent challenges with resilience. Despite setbacks related to regional conflicts, the integrated resort demonstrates robust growth in both its casino and hotel sectors, marking a promising trajectory for the future.
Contextualizing Recent Challenges:
The City of Dreams Mediterranean, Melco Resorts & Entertainment’s latest venture in Cyprus, faced a period of uncertainty following regional conflicts, including the Gaza-Israel and Russia-Ukraine conflicts. Initial concerns suggested a significant downturn in business due to disruptions in key feeder markets.
Contrasting Expectations with Reality:
Preconceived notions of the property being a “ghost town” were dispelled upon closer inspection. Recent visits revealed a vibrant atmosphere, particularly on weekends, with the main gaming floor bustling with activity. Despite midweek tendencies being slower, there’s a notable flow of patrons engaged in various gaming offerings, including table games and slot machines.
Rebound in Business Volumes:
Sources familiar with City of Dreams Mediterranean confirmed a resurgence in business levels, attributing it particularly to returning Israeli customers. These customers, previously hesitant due to conflict-related uncertainties, have resumed travel, driving significant activity within the resort.
Hotel Occupancy Rates:
The 500-room hotel at City of Dreams Mediterranean reflects impressive occupancy rates, standing at around 80% on weekends and 40% midweek, even during Cyprus’s off-peak season in February. This underscores the resort’s appeal and ability to draw guests despite seasonal challenges.
Anticipating Summer Operations:
Looking ahead, City of Dreams Mediterranean prepares for its inaugural summer season, a period marked by increased flight capacity and heightened tourism activity in Cyprus. The resort is poised to capitalize on this surge, aligning with expectations for continued growth and prosperity.
Financial Outlook:
Melco Resorts & Entertainment is set to unveil its 4Q23 and FY23 financial results, providing further insight into the performance of City of Dreams Mediterranean amidst prevailing circumstances. The anticipated release will offer stakeholders a comprehensive understanding of the resort’s financial resilience and future prospects.
City of Dreams Mediterranean emerges as a beacon of resilience amidst regional turmoil, showcasing robust business volumes and impressive hotel occupancy rates. With a promising outlook for the upcoming summer season and forthcoming financial disclosures, the integrated resort stands as a testament to Melco Resorts & Entertainment’s strategic vision and operational excellence in navigating challenging environments.