City Of Dreams Sri Lanka Posts EBITDA Gain For John Keells In Second Quarter

City of Dreams Sri Lanka contributed LKR388.72 million, or $1.16 million, in EBITDA to the bottom line of its developer partner, John Keells Holdings, during the quarter ended June 30. The new figures are a clear indication of an improvement compared to the same period of the previous year, when the property registered an LKR999.73 million loss.

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Improvement From A Year Earlier

The comparison with the second quarter of 2025 reflects the fact that the property only officially opened in August 2025. Even so, the June quarter showed clearer signs of progress for the integrated resort, which sits at the centre of John Keells’ leisure and hospitality operations.

According to the company, City of Dreams Sri Lanka continued to build momentum during the quarter. The group said hotel EBITDA improved on the back of higher occupancy and average room rates, while the casino continued to show a steadily better performance. John Keells said it recognises rental income from that gaming operation.

Melco Resorts & Entertainment, a casino operator based in Hong Kong, is managing the casino operations and Nuwa hotel within City of Dreams. It is the first-ever South Asia resort venture for the company, which is also the first project being implemented in Sri Lanka by Melco Resorts & Entertainment.

A Large-Scale Resort In Colombo

The US$1.2 billion resort is intended to position itself as “India’s Macau,” with the project also aimed at attracting visitors from Russia, China, and the Middle East. The resort’s scale and mixed-use structure place it among the most visible hospitality developments in the country.

Within the complex, the 687-room Cinnamon Life hotel is operated by John Keells. The hotel forms part of the wider City of Dreams Sri Lanka development and contributes to the broader leisure offering around the integrated resort.

The latest results suggest that both the hotel and casino sides of the project are moving in a positive direction, although the business remains relatively early in its operating cycle. The quarterly numbers provide one of the first clearer signs of how the resort is performing after its official launch.

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Operating Conditions Remain Challenging

Despite the improved EBITDA result, John Keells said the profitability of its leisure industry group was affected by difficult operating conditions. The company pointed to conflict in the Middle East, saying it disrupted travel and weakened sentiment in several key source markets.

That note of caution provides context for the quarter’s overall performance. While occupancy and room rates supported the hotel segment and the casino continued to improve, external travel conditions still weighed on the wider leisure business.

The result reflects a mixed picture: stronger underlying momentum at City of Dreams Sri Lanka, but also pressure from broader regional conditions that affected travel flows during the quarter.

Early Operating Trends

For John Keells, the second-quarter EBITDA reading marks a clear improvement on the prior-year loss and gives an early indication of how the resort is settling into operation. The property’s official opening in August 2025 means the current results are still in the early stages of its performance history.

Melco’s role as casino and Nuwa hotel operator also places the development within a wider international gaming partnership, while John Keells continues to manage the hotel side and to recognize rental income from the casino. Together, the results point to gradual progress for the project as it works through its first full operating period.

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Source: Inside Asian Gaming