Melco International Development

Last updated
Melco International Development Limited
Native name
新濠國際發展有限公司
FormerlyThe Macao Electric Lighting Company Limited
Type Listed company
SEHK:  200
Industry Consumer discretionary – travel, leisure [1]
GenreEntertainment, leisure, other
Founded1910;112 years ago (1910) in British Hong Kong
Headquarters
Central, Hong Kong
,
China
Area served
 Hong Kong, Macau, Philippines, Cyprus
Key people
 Lawrence Ho
(Chairman and CEO)
Evan Winkler
(President and Managing Director)
BrandsMocha Club, Nüwa, City of Dreams, The House of Dancing Water, Studio City, Altira Macau
Subsidiaries Melco Resorts & Entertainment Limited
Website www.melco-group.com

Melco International Development Limited, formerly The Macao Electric Lighting Company Limited, is a multinational investment holding company based in Central, Hong Kong. [2] Melco International invests in casino and hospitality business and other businesses in Hong Kong, Macau, the Philippines, [3] and Cyprus. [4] One of the 100 oldest companies in Hong Kong, it was founded in 1910 [5] and listed on the Hong Kong Stock Exchange in 1927. [6] Originally an electricity supplier to Macau, [7] around 2001 [8] Melco International diversified into casino development and operations, building casino resorts [9] such as Studio City Macau, [10] City of Dreams Macau, [11] City of Dreams Manila, [12] and Altira Macau. [11] Currently the major subsidiary that Melco International operates is Melco Resorts & Entertainment Limited. [13]

Contents

History

1910–1987 – Macao Electric Lighting

The legacy company of Melco International Development Limited, the Macao Electric Lighting Company, Limited (MELCO), was incorporated in 1910. [14] [5] [3] The company was among the first 100 companies established in Hong Kong [6] [5] [15] and the first company to supply power to the city of Macau. [7] The company was listed on the Hong Kong Stock Exchange in 1927. [6] [16]

1988–2004 – Melco International

The Macao Electric Lighting Company, Limited was renamed Melco International Development Limited (Melco International) in 1988. [14] [3] In 1993, Melco International became a subsidiary of Shun Tak Holdings and acquired Aberdeen Restaurant Enterprises Limited, [6] which owned the Jumbo Floating Restaurant and Tai Pak Floating Restaurant in Aberdeen, Hong Kong. [6] [17] Melco International ceased to be a subsidiary of Shun Tak Holdings in 1996. [6] Lasting Legend Limited became Melco International's single largest shareholder in 2001 and Lawrence Ho became Melco International's managing director. [6] In 2002, Melco International acquired the natural gas supplier Tongda Energy. [17] Also renovating its Jumbo restaurant brand, Melco International expanded into finances and technology with stakes in companies [8] such as iAsia Technology Limited, which was renamed as Value Convergence Holdings Limited. In 2003, Value Convergence together with its units VC CEF Capital, VC CEF Brokerage and VC CEF Futures became Melco International's subsidiaries, [6] which were subsequently disposed of in 2009. [18]

Melco International's Mocha Clubs, opened in 2003, [8] helped introduce "cafe-style slot-machine parlors" to Macau, which were uncommon at the time. [11] Melco completed the acquisition of Mocha Slot Group Limited in 2004. After opening its Macau headquarters in 2003, the following year Melco International opened offices in Beijing, Shanghai, Shenzhen and Manila. [6] In 2004, Melco International acquired a 50% stake in Altira Macau. [19]

2004–2014 – Integrated resorts

Melco International formed a joint venture with Publishing and Broadcasting Limited (PBL), an Australian casino operator, [8] in November 2004. [20] [6] With Lawrence Ho and PBL's chief executive James Packer appointed co-chairmen, [21] the venture was breaking ground on a new casino project in Macau by December 2004. Melco International's profit increased 770% in 2005 to HK$534.2 million, [6] and by 2006 the company had regained profitability. Also in 2006 the joint venture purchased the final available gaming license in Macau from Steve Wynn at US$900 million, announcing a new focus on "Las Vegas-style entertainment" with hotels, serviced apartments, shopping, restaurants, and various kinds of entertainment. [8]

Melco PBL Entertainment was listed on the NASDAQ Global Select Market in 2006. [22] [23] With Melco International retaining a third of the shares, [11] [21] the initial public offering raised US$1.14 billion and ranked as the year's fourth-largest IPO in the United States. [6] Several months later, its Altira Macau resort opened in 2007. [11] In 2008, Melco PBL Entertainment [2] changed its name to Melco Crown Entertainment Limited, [6] or MCE. [5] Melco International was a founding signatory of the Hong Kong Corporate Governance Charter. Melco International became a member of the Hang Seng Corporate Sustainability Index in 2013. [16] Between April 2013 and April 2014, Melco International's stock rose by half in value in Hong Kong. [21]

2015–2020 – Melco Resorts and listings

In May 2016, the company became the single largest shareholder of Melco Crown. [16] In May 2017, Melco Crown ended its partnership with Crown Resorts and became Melco Resorts & Entertainment (MLCO). [10] [24] With Crown's stake purchased for $1.16 billion, [25] Melco International via Melco Resorts at the time owned three resorts in Macau, eight Mocha Clubs, and a resort in the Philippines. [10] In May 2017, Forbes recorded Melco International as having assets of $13.4 billion, [26] 20,548 employees, [27] and a market cap of $2.8 billion. It also ranked fourth on the Forbes list of 2017 Growth Champions. [26] With Lawrence Ho as chairman and chief executive, [8] in October 2018 Melco Resorts filed with the U.S. Securities and Exchange Commission [28] for a spin-off and NYSE listing of its Studio City International Holdings Limited unit. [6] [29] With Melco Resorts owning 60% [30] of Studio City, [31] the press reported the IPO could raise as much as HK$2.8 billion, [28] with Melco Resorts to remain majority shareholder. [29] [32] Melco Resorts continues to be listed on the NASDAQ Global Select Market. [33]

As an investment holding company, Melco International Development Limited currently has investments in Hong Kong, China, Cyprus, and the Philippines. [14] Active Melco International subsidiaries beyond Melco Resorts include Entertainment Gaming Asia, Inc., which focuses on social gaming platform development businesses. [34] In 2019, Melco International listed revenues of HK$45 billion, with profits of HK$1.8 billion. [35]

Major subsidiary

Melco Resorts & Entertainment Limited

Melco Resorts & Entertainment (Melco Resorts) operates as a subsidiary of Melco International, which owns 51.2% of the shares. [32] Referred to as Melco PBL Holdings until 2008 [6] and Melco Crown Entertainment until 2017, [10] the division owns the Mocha Clubs gaming cafe business and several casino resorts, [33] including City of Dreams Macau, Altira Macau, [11] Studio City Macau [10] and City of Dreams Manila. [12] As of 2016, the subsidiary's holdings included 3,000 hotel rooms, 60 food outlets, and 16,000 staff. [5] Melco Resorts operates several subsidiaries in localized markets such as Cotai, [28] Macau, [5] and the Philippines. [36] In Cyprus, Melco Resorts operates through the subsidiary ICR Holdings, which in turn consists of subsidiaries such as Integrated Casino Resorts Cyprus Limited and ICR Cyprus Resort Development Co. Limited. [37]

In June 2018, Melco Resorts & Entertainment opened Morpheus, a $1.1 billion hotel tower designed by Zaha Hadid. Macau-Morpheus-01.jpg
In June 2018, Melco Resorts & Entertainment opened Morpheus, a $1.1 billion hotel tower designed by Zaha Hadid.

The first iteration of Melco Resorts was formed in 2004 as a joint venture [20] [6] between Melco and Publishing & Broadcasting Limited (PBL). [8] In September 2006, [5] the PBL-Melco venture spent US$900 million purchasing [8] [22] the last [11] of Macau's six gaming licenses from Wynn Resorts, allowing for the operation of "an unlimited number of casinos, tables and machines in Macau until June 2022." [8] In May 2007, [5] the venture launched the casino resort Altira Macau (Crown Macau) [11] in Taipa [5] for $1.45 billion. [8] Melco Crown then launched City of Dreams Macau in 2009 for $2.4 billion, [11] with Melco PBL owning 66% of the development [38] and appointing Hyatt International to operate two hotels at the location. [6] The following year, City of Dreams Macau's House of Dancing Water attraction became "the most popular" show in Macao. [5]

On December 7, 2011, Melco Crown was listed on the Hong Kong Stock Exchange's main board. The following year, Melco Crown acquired a majority share of Manchester International Holdings Unlimited Corporation, which was listed on the Philippine Stock Exchange. Melco Crown began working on a new resort in 2012, [6] the $1 billion casino resort City of Dreams Manila. [39] In 2015, Melco Crown opened its $3.2 billion Studio City Macau resort [11] [10] after acquiring a 60% interest in the Hollywood-themed development in 2011. [38] [12] Melco Crown had invested US$6.5 billion in Macau by July 2016, [5] with Melco Crown receiving the CSR Gold Award at Business Awards of Macau in 2013 and 2017. [33] In June 2017 [40] [41] the Cyprus government awarded the project company led by Melco group the first and only casino license in the country, granting a term of 30 years with exclusivity for 15 years. [4] In September 2017, [42] Melco International subsequently obtained a majority stake in [39] the City of Dreams Mediterranean Casino project, [4] which is composed of up to four satellite casino premises in the country. [43]

After Japanese lawmakers pushed for legalized gambling in integrated resorts, by 2017 Melco Resorts & Entertainment was bidding [25] for one of an expected three licenses. [41] In 2018 Melco Resorts opened Morpheus, a $1.1 billion hotel tower designed by Zaha Hadid, at City of Dreams Macau. [44] In the spring of 2018, Melco Resorts revealed its Macau resorts would rely on databases instead of junket operators to market to VIP visitors. [9]

List of developments

Melco International's major holdings include:

See also

Related Research Articles

Economy of Macau Regional economy

The economy of Macau has remained one of the most open in the world since its handover to China in 1999. Apparel exports and gambling-related tourism are mainstays of the economy. Since Macau has little arable land and few natural resources, it depends on mainland China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods. Although Macau was hit hard by the 1997–98 Asian financial crisis and the early 2000s recession, its economy grew approximately 13.1% annually on average between 2001 and 2006. Macau is a full Member of the World Trade Organization. Public Security has greatly improved after handover to the People's Republic of China. With the tax revenue from the profitable gambling industry, the Macau government is able to introduce the social welfare program of 15 years of free education to all Macau citizens. In 2015, Macau's economy saw a sharp decrease due to the reduced spending by visitors from Mainland China since the Anti-corruption campaign under Xi Jinping.

James Douglas Packer is an Australian billionaire businessman and investor. Packer is the son of Kerry Packer, a media mogul, and his wife, Roslyn Packer. He is the grandson of Sir Frank Packer. He inherited control of the family company, Consolidated Press Holdings Limited, as well as investments in Crown Resorts and other companies. He is the former executive chairman of Publishing and Broadcasting Limited (PBL) and Consolidated Media Holdings, which predominantly owned media interests across a range of platforms, and a former executive chairman of Crown Resorts.

Stanley Ho Chinese entrepreneur

Stanley Ho Hung-sun was a Hong Kong-Macau billionaire businessman. His original patrilineal surname was Bosman, which was later sinicized to 何 (Ho). He was the founder and chairman of SJM Holdings, which owns nineteen casinos in Macau including the Grand Lisboa.

Gambling in Macau

Gambling in Macau has been legal since the 1850s when the Portuguese government legalised the activity in the autonomous colony. Since then, Macau has become known worldwide as the "Gambling capital of the world" or "Monte Carlo of the East".

Las Vegas Sands U.S. gambling company

Las Vegas Sands Corporation is an American casino and resort company based in Paradise, Nevada, United States. The resorts feature accommodations such as gambling and entertainment, convention and exhibition facilities, restaurants and clubs, as well as an art and science museum in Singapore.

Genting Group

The Genting Group is a company headquartered in the Wisma Genting in Kuala Lumpur, Malaysia. It comprises the holding company Genting Berhad, its listed subsidiaries Genting Malaysia Berhad, Genting Plantations Berhad, Genting Singapore Plc, as well as its wholly owned subsidiary Genting Energy Limited.

Cotai Zone in Municipality of Ilhas, Macau

Cotai is a 5.2-square-kilometer (2.0 sq mi) piece of newly reclaimed land on top of Seac Pai Bay between Taipa and Coloane islands in Macau, that has made two independent islands become one island, since 2005. The word can also refer to the entire new island which was formed by the reclamation. In the second sense, the Special Administrative Region of Macau now consists of the Macau Peninsula plus Cotai Island, about a mile to the south.

Cotai Strip

The Cotai Strip is a term coined by Las Vegas Sands Corporation with regard to its building of a strip of hotel-casinos in the Cotai section of Macau, a special administrative region of the People's Republic of China.

The Sociedade de Turismo e Diversões de Macau, SA; abbreviated as STDM, is a company in Macau owned by Stanley Ho and his family. Historically, it has held a monopoly to Macau's gambling industry as the only licensee for casinos. In 2002, the government of Macau began issuing more licenses and the monopoly was broken. Still, of the 41 operating casinos in Macau, 22 are owned by STDM, as of 2019. Macau is a location in James Bond film The Man with the Golden Gun.

Publishing and Broadcasting Limited Australian media and gaming company

Publishing and Broadcasting Limited (PBL) was one of Australia's largest corporations. With interests primarily in media and gambling, for the entirety of its existence it was largely controlled by the Packer family.

Altira Macau

Altira Macau, formerly known as Crown Macau, is a resort and casino located at Taipa, Macau, SAR China. The change of name were caused by the opening of Crown Towers Macau in June 2009 as part of the City of Dreams development. It contains 220 gaming tables, 500 gaming machines, and 216 guest rooms. With 38 floors at a height of 160 meters, Altira Macau is the highest building in Taipa. It was built and is operated by Melco Crown Entertainment, a joint venture by Hong Kong-based Melco International Development Limited and Australian based Crown Limited. It opened on May 12, 2007, and James Packer was present for the opening ceremony.

Studio City (Macau)

Studio City is a hotel casino resort on the Cotai Strip in Cotai, Macau. The Hollywood studio-themed leisure resort is the first in Asia to integrate television and film production facilities, retail, gaming and hotels. It is majority-owned by Melco Resorts & Entertainment and its subsidiary Studio City International Holdings Limited (SCIHL), Its two towers are connected by the world’s first and highest figure-8 ferris wheel.

Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited is a developer, owner and operator of integrated resorts with entertainment and casino gaming facilities in Asia and Europe. Based in Hong Kong, the company is listed on the NASDAQ. Originally known as Melco Crown Entertainment, Melco Resorts was founded in 2004 as a joint venture between Melco International and Crown Limited. Melco Crown became Melco Resorts & Entertainment in May 2017 and currently operates as a subsidiary of Melco International. Melco Resorts owns a number of integrated casino resorts, having launched Altira Macau in 2007, City of Dreams Macau in 2009, City of Dreams Manila in 2015, and Studio City Macau in 2015. It also operates the Mocha Clubs slot machine brand and is in the process of constructing the City of Dreams Mediterranean resort in Cyprus, which will be the largest casino-resort in Europe. Other projects under construction include an onsen spa and a ski resort in Japan.

Crown Resorts Australian gambling and hospitality company

Crown Resorts Limited is Australia's largest gaming and entertainment group which had, in April 2018, a market capitalisation of just over A$8.7 billion. Crown wholly owns and operates two of Australia's leading gambling and entertainment complexes, Crown Melbourne and Crown Perth.

City of Dreams (casino) Casino resort in Cotai, Macau, Peoples Republic of China

City of Dreams is a casino resort in Cotai, Macau, SAR of People's Republic of China. Built, owned and managed by Melco Resorts & Entertainment, the resort, also known as CoD or CoD Macau, opened on June 1, 2009. Described as a "mega-casino" by The Guardian, in 2020 City of Dreams was the third-largest casino in the world. In total the property comprises three separate casinos, four hotels, five hotel towers, around 2,270 total hotel rooms, around 30 restaurants and bars, and 175,000 square feet (16,300 m2) of retail space.

Pansy Ho

Pansy Catalina Ho Chiu-king is a Hong Kong-Canadian billionaire businesswoman who is the daughter of Macau-based businessman Stanley Ho, and the managing director of various companies he founded, including Shun Tak Holdings and the Sociedade de Turismo e Diversões de Macau. Pansy has major interests in two of the six casino licence-holders in Macau. She was named 25th on Forbes’ list of Hong Kong’s 50 richest people in 2021 with an estimated fortune of HK$31.8 billion, and the 2nd richest woman in Hong Kong.

Entertainment City Gaming and entertainment complex

Entertainment City, also known as E-City, is a gaming and entertainment complex under development by PAGCOR spanning an area of 8 km2 (3.1 sq mi) in Bay City, Metro Manila, Philippines. It was first envisioned by PAGCOR in 2002. Alongside the Aseana City business development, it lies at the western side of Roxas Boulevard and south of SM Central Business Park, part of Parañaque.

Lawrence Ho Hong King-born Canadian businessman

Lawrence Ho Yau Lung is a Hong Kong-born Canadian businessman. Starting his career as an investment banker at Jardine Fleming and Citibank, in 2001 he took over operations at Melco International. Later named chairman and CEO, Ho refocused the company on leisure and entertainment, building and operating casino resorts in Macau, the Philippines, and Cyprus. With an estimated net worth of $2.2 billion, he was named “Asia’s Best CEO” at the Asian Excellence Awards for the seventh time in 2018.

City of Dreams Manila Casino in Manila, Philippines

City of Dreams Manila is a 6.2-hectare (15-acre) luxury integrated resort and casino complex located on the Entertainment City gaming strip at Asean Avenue and Roxas Boulevard in Parañaque, Metro Manila, Philippines.

Morpheus (hotel)

Morpheus is a neo-futurist luxury hotel in Macau, Special administrative regions of China that is operated by Melco Resorts & Entertainment. Opened in June 2018, TIME describes it as "the world’s first free-form exoskeleton-bound high-rise: a grid of steel envelops 40 stories of glass with a fluidity inspired by Chinese jade carving." The interior has a gaming floor, a rooftop pool, a modern-art gallery, and restaurants by chefs such as Alain Ducasse. The hotel tops out at 160 meters tall.

References

  1. ↑ "Melco International Development Ltd.", HKEX
  2. 1 2 "The Best Bet in Macau Is Casino Operator Melco", Barron's , Lesli P. Norton, May 5, 2008
  3. 1 2 3 Melco International Development Ltd. Profile at Bloomberg Businessweek
  4. 1 2 3 "Lawrence Ho: ‘All In’ Regarding the Casino in Cyprus", Gold News, January 10, 2018
  5. 1 2 3 4 5 6 7 8 9 10 11 "12 years of Cotai", Macao Magazine, July 31, 2016
  6. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 "Corporate Milestones", Melco
  7. 1 2 "Country Water Action: Macau Water – Aiming Higher", Asian Development Bank, June 30, 2008
  8. 1 2 3 4 5 6 7 8 9 10 11 "Gambling heir raises the stakes in Macau", South China Morning Post , May 8, 2006
  9. 1 2 "Melco's new $1 billion Macau hotel to operate without casino junkets: CEO", Reuters , Farah Master, May 6, 2018
  10. 1 2 3 4 5 6 7 8 Cohen, Muhammad (January 17, 2018), "Hong Kong's Richest 2018: Gaming Tycoon Lawrence Ho Adds $1.2B To Wealth, But Aims For Bigger Prizes", Forbes , United States, retrieved July 10, 2019
  11. 1 2 3 4 5 6 7 8 9 10 11 12 Muhammad Cohen (7 January 2016). "Lawrence Ho Bets Big On Small Players". Forbes Asia. No. January 2016. Retrieved 20 May 2019.
  12. 1 2 3 4 Chan, Kelvin Macau's Melco in $1 billion Philippine casino project Associated Press , 6 July 2012, at Yahoo! Finance
  13. ↑ "Directors", Melco Group, melco-group.com
  14. 1 2 3 "Melco International Develop. (200:Hong Kong)", Bloomberg
  15. ↑ MELCO INTERNATIONAL DEVELOPMENT
  16. 1 2 3 "Corporate Profile", Melco International
  17. 1 2 "Young Ho grabs his chance", South China Morning Post , Enoch Yiu, December 2, 2002
  18. ↑ "Melco International Development Limited", Melco Group, September 18, 2009
  19. ↑ "Melco to buy Macau stake from chairman", Las Vegas Sun , September 14, 2004
  20. 1 2 "PBL withdraws from Singapore casino bid", Financial Times , January 3, 2006
  21. 1 2 3 "Out From Macau: Lawrence Ho's Melco International Signs MOU With Spanish Company", Forbes , Russell Flannery, April 27, 2014
  22. 1 2 "Melco gets clearance for Nasdaq listing", Financial Times , Tom Mitchell, October 26, 2006
  23. ↑ "Melco Crown proposes Hong Kong delisting", GGR Asia, January 2, 2015
  24. ↑ "Melco Crown Falls 5%: Ho Offers Shares, Goes Solo", Barron's , Dimitra DeFotis, May 8, 2017
  25. 1 2 Melco's Lawrence Ho on Reasons for Split with James Packer's Crown, United States: Barron's, 2017, retrieved July 10, 2019
  26. 1 2 "#4 Melco International Development", Forbes , May 24, 2017
  27. ↑ "Melco International," Forbes, 2017
  28. 1 2 3 "Melco plans to spin off Studio City", The Standard , Avery Chen, October 11, 2018
  29. 1 2 "Melco International Plans Spin-Off, Separate Listing of Studio City International Holdings in U.S.", Fox News Network , Joanne Chiu, August 14, 2017
  30. ↑ "Melco applies to list its Macau-based Studio City’s shares in New York", South China Morning Post , Louise Moon (September 10, 2018)
  31. ↑ "Melco's VIP tables at Studio City could be put to 'better use' in City of Dreams or Altira after 2020 – Brokerage", Macau News Agency, Nelson Moura, January 16, 2019
  32. 1 2 "Melco shares jump as it plans US listing for Studio City unit", South China Morning Post , Laura He, July 20, 2018
  33. 1 2 3 "Melco named Socially Responsible Operator of the Year at 12th International Gaming Awards", Barron's , Press release, February 12, 2019
  34. ↑ "Melco International Development Limited Business Overview – Entertainment Gaming Asia", Melco International
  35. ↑ "Melco International Announces 2019 Annual Results", 2019
  36. ↑ "Melco delays Philippine tender offer, cancels delisting amid minority investor feud", Reuters , October 19, 2018
  37. ↑ "Melco increases shares in Cyprus project, holds 75 per cent stake", Macau Business, Sheyla Zandonai, December 19, 2017
  38. 1 2 About Crown: Summary of key businesses Archived 2009-09-16 at the Wayback Machine at Crown Ltd official website
  39. 1 2 "Lawrence Ho aims at global casino business for Melco", South China Morning Post , December 6, 2017
  40. ↑ "License Agreement", Melco International (June 26, 2017)
  41. 1 2 Sun, Nikki (May 21, 2018), "Macau gaming tycoon veers from Russia toward Japan", Nikkei Asian Review , Japan, retrieved July 10, 2019
  42. ↑ "Voluntary Announcement", Melco International, September 11, 2017
  43. ↑ "Why This Company Is Betting on Tourists Flying to Cyprus From Around the World", Bloomberg , Georgios Gergiou, January 10, 2018
  44. 1 2 "Casino designed by Zaha Hadid opens in Macau", The Star , June 17, 2018
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.