Melco’s Studio City to House Private Hospital in Macau
Melco Resorts & Entertainment is set to construct a private hospital at its Studio City resort in Macau, marking a significant shift in the city’s economic landscape.
Key Takeaways:
- Melco partners with iRad to open a 12,600-square-foot healthcare facility
- The hospital will specialize in diagnostic and imaging services
- This move aligns with Macau’s push for economic diversification beyond gaming
A New Era for Macau’s Resort Scene
Melco Resorts & Entertainment’s decision to build a healthcare center at Studio City signals a transformative period for Macau’s hospitality sector. The company has joined forces with iRad Imaging and Diagnostic Medical Center to establish a 12,600-square-foot facility, scheduled to open on October 1, 2025.
This healthcare venture is part of a broader initiative to diversify Macau’s economy beyond its traditional casino-centric model. The new hospital will focus on providing specialized diagnostic and imaging care, including MRI and CT scans, mammography, ultrasound, and X-ray services.
Financial Structure and Operations
Studio City Retail Services Ltd (SCRS), a Melco subsidiary, will supply and install the necessary medical equipment. iRad will oversee the day-to-day operations of the facility. The agreement between the parties extends until the end of 2034, with potential extensions.
According to InsideAsianGaming, iRad will pay a monthly base rent starting at MOP 694,981 ($86,700) or 1.5% of sales, whichever is greater. A management fee will be implemented from the fourth year onwards.
Melco’s Investment in Non-Gaming Activities
This project aligns with Melco International’s commitment to supporting Macau’s healthcare industry during the current gaming concession period. Casino operators are required to invest substantially in non-gaming activities. Melco plans to provide iRad with monthly financial support initially to assist with startup and operational costs, including staff recruitment and technology upgrades.
Connections to Melco’s Leadership
The partnership has ties to Melco’s upper management. A family trust benefiting Chairman Lawrence Ho and his family members, with Zedra Asia Ltd as its trustee, owns slightly over 40% of iRad. Black Spade Capital, an associated investment group, had previously acquired a controlling stake in the medical company.
Impact on Macau’s Tourism and Healthcare Landscape
Melco has stated that visitors and employees at its Macau properties, including Studio City, City of Dreams, and Altira, will have access to discounted health screening packages at the new center. This initiative aims to enhance community health while positioning Macau as an attractive medical tourism destination.
Part of a Larger Investment Plan
The Studio City hospital project is a component of the 10-year concession deals signed in 2022, where Macau’s six casino operators pledged to invest a total of MOP 108.8 billion ($13.6 billion) in non-gaming initiatives. As other casino companies unveil similar healthcare projects, Studio City’s new hospital reflects a shift in the region’s resort landscape, blending traditional gaming offerings with advanced healthcare services.