City of Dreams Sri Lanka posts positive EBITDA in Q4
City of Dreams Sri Lanka recorded adjusted EBITDA of LKR1.43bn ($4.62m) in the fourth quarter of 2025, marking a notable turning point disclosed in John Keells Holdings’ fiscal third-quarter results. The period represented the resort’s first complete quarter with all core components operational, including the luxury casino, the 113-key Nuwa hotel and the initial phase of its premium retail mall.
The casino is operated by Melco Resorts & Entertainment under a 20-year licence, representing Melco’s first venture into South Asia. JKH Chairperson Krishan Balendra said the results reflected steady progress, with fixed rental income already being generated from the mall, while variable, performance-linked rents will follow as operating benchmarks are met. He expressed confidence that the $1.2bn integrated resort will continue to gain traction over the coming quarters, highlighting the achievement of positive EBITDA as an important signal of improving cash flow.
Both hotels within the development, the 687-room Cinnamon Life, managed by JKH and the more exclusive Nuwa continue to receive strong feedback from domestic and international guests. This growing demand is contributing to increased activity across the wider resort ecosystem, including the casino and retail offering.
Full Operations Drive Integrated Performance
The fourth quarter marked the first time the resort functioned as a fully integrated destination, allowing the casino, hotels and retail spaces to operate in tandem. Positioned by its developers as a potential “Macau of India,” the project targets affluent visitors from India alongside guests from the Middle East, Russia and China, combining gaming, luxury accommodation and high-end shopping.
Balendra noted that the structure of the mall leasing model provides stability through fixed rents, while variable components are designed to reward stronger operational performance. The achievement of positive EBITDA reflects the scale of the long-term investment and demonstrates that the resort’s individual elements are beginning to work together as intended. Strong hotel occupancy across both Cinnamon Life and Nuwa has supported broader spending across gaming and retail.
Casino Momentum Underpins Outlook
According to Balendra, the casino’s gradual improvement is central to the resort’s outlook as integration deepens. Melco’s long-term operating licence provides management continuity, while the variable rent structure aligns incentives between operator and owner. The move into positive EBITDA also reduces near-term financial pressure, allowing greater flexibility as the resort continues to optimise operations.
Hotel performance remains a key non-gaming driver, with Cinnamon Life catering to larger volumes and Nuwa focusing on high-end clientele, helping diversify revenue streams around the gaming core.
Focus on Regional Premium Markets
City of Dreams Sri Lanka is targeting high-value visitors from India as its primary growth market, while also appealing to premium travellers from the Middle East, Russia and China. The dual-hotel strategy supports both scale and exclusivity, reinforcing the resort’s positioning as a regional luxury destination.
Early Proof as Ramp-Up Continues
The first full quarter of operations has provided early validation of the integrated resort model, with positive EBITDA achieved during the ramp-up phase. Strong hotel demand and improving casino performance point toward further upside as the development matures, supported by the combined expertise of JKH and Melco.
