Melco Crown Entertainment (NASDAQ:MLCO) is one of the most rapidly growing casino companies in the world thanks to its lucrative Macau operations and savvy growth-oriented CEO. After it already boasted incredible first-quarter 2014 revenue as its Macau properties continue to boom, the company is just about to focus attention on its newest resort in Manila, Philippines which will open this year. Here are two exciting reasons why this casino, City of Dreams Manila, will please visitors. With Hyatt Hotels (NYSE:H) managing the main hotel at the resort and DreamWorks Animation (NASDAQ:DWA) adding extra industry-first entertainment, Foolish investors should watch this casino resort.
Industry-leading entertainment with Dreamworks
Melco Crown's City of Dreams resort in Manila will already become an entertainment metropolis just because of the splendor that the casino and resort will bring. However, through a partnership with DreamWorks Animation, Melco Crown is taking this to the next level.
"DreamPlay by DreamWorks" will be an interactive entertainment experience that the market has yet to see. The interactive technology of the space allows the user to live the best elements of the DreamWorks library of characters mixed with realistic activities. The latest digital technologies and creative elements will allow guests to play directly with their favorite animated characters.
Imagine getting to learn martial arts side by side with Kung Fu Panda, playing in the mud with Shrek, or learning how to train your own dragon with the thrill of living the movie. This type of interactive entertainment, at this level, has yet to be developed anywhere else. Melco Crown is confident that it will make the resort a new type of destination for families in the Philippines and across Asia.
Relaxing in style with Hyatt Hotels
Melco Crown doesn't just want people to come for the fun and entertainment, but also for the relaxing and comfortable resort feel that will make this City of Dreams resort a vacation destination not just for Filipinos, but also for wealthy travelers all around Asia. Hyatt Hotels has agreed to partner with Melco Crown Philippines to build and manage a twin-tower hotel that will include a family entertainment center, a live performance lounge, and a nightclub in "an architecturally unique 'Fortune Egg' structure" according to a company statement. As part of the overall $1.3 billion integrated casino resort, Melco Crown and Hyatt will together provide a resort experience that is sure to sway visitors from Filipino locals to wealthy Japanese tycoons and Chinese government officials by convincing them that Melco Crown Manila is a great place to play.
The hotel will have just 365 rooms, less capacity than Melco Crown's coming Studio City resort in Macau which will start out with 1500 rooms, but it's just a start. Last year Melco Crown CEO Lawrence Ho said his group was planning to build three hotels in City of Dreams Manila that included a 260-room premium hotel under the Crown Towers chain owned by another partner, as well as a luxury boutique hotel built by Japanese chain Nobu featuring the largest nightclub in the city, as well as separate Hollywood-style theme park.
Foolish conclusion: Melco Crown looks like a buy, and this makes it even sweeter
Melco Crown's Macao casinos City of Dreams Cotai and Altira Macau together drove the company's revenue up 19% over the first quarter of 2013 and its EBITDA up over 31% during the same period. The company is currently building its third major casino resort on the Cotai Strip in Macau, which is sure to bring in massive revenue as well.
At only $33 per share, Melco Crown appears undervalued given its strong earnings growth history. On top of this, its coming casino in Manila, the company's first big push outside of Macau, is already off to an exciting start with partnerships with Hyatt Hotels and DreamWorks Animation. For Foolish investors who are looking for an exciting investment with catalysts, Melco Crown is a good bet.