JHK announces partnership with Melco for integrated resort project

John Keells Holdings (JKH) PLC this week announced it has partnered with Melco Resorts & Entertainment Ltd (Melco), one of the world’s largest integrated resort operators and an owner and developer of casino gaming and entertainment resort facilities, for its integrated resort project developed by Waterfront Properties Limited.
In a filing to the Colombo Stock Exchange on April 30, JKH said a wholly-owned subsidiary of Melco would be the operator of the gaming facility at Cinnamon Life Integrated Resort, which is developed by the John Keells group, at an investment of over US $ 1 billion. 
The filing also highlighted that as part of the collaboration between JKH and Melco, the integrated resort, which was previously branded as Cinnamon Life Integrated Resort, would be rebranded as City of Dreams Sri Lanka. 

City of Dreams is the flagship integrated resort brand of Melco. 
City of Dreams Sri Lanka will be the first fully-fledged integrated resort in the whole of South Asia and is expected to create an upsurge in tourism, foreign exchange earnings and employment generation in the city of Colombo, similar to other cities that have opened iconic integrated resorts of this nature. 
Additionally, a wholly-owned local subsidiary of Melco is awarded a 20-year casino licence by the government of Sri Lanka. Melco will fit-out and operate the gaming area at City of Dreams Sri Lanka and Melco will manage the top five floors of the hotel, under its Nuwa brand of ultra high-end luxury rooms, which represent 113 of the 800 total hotel rooms at City of Dreams Sri Lanka.
Melco and John Keells have agreed all key commercial arrangements and expect fit-out of the casino area to begin shortly. The estimated initial investment in the casino is expected to be approximately US $ 125 million. 
The non-gaming facilities of the integrated resort, including the 687 key Cinnamon Life hotel managed by John Keells, are in the final stages of completion; operations are expected to commence in the third quarter of 2024. The casino operations are expected to commence in mid-2025. 
In a statement, Melco Chairman and CEO Lawrence Ho said the entity believes Sri Lanka has immense potential and this opportunity complements their existing portfolio of properties.
“Furthermore, City of Dreams Sri Lanka is expected to serve as a catalyst for stimulating tourism demand and promoting economic growth in Sri Lanka, drawing inspiration from the successful examples set by similar integrated resorts in other jurisdictions. 
We will continue to work closely with our esteemed partners and the Sri Lankan government to ensure the success of this venture and we expect to make a significant and positive impact on the local community and economy,” he said.