Melco Resorts posts strong 1Q26 margins and readies new REM hotel to boost growth and market share.

Melco Resorts & Entertainment reported a 27.4% adjusted property EBITDA margin in 1Q26, with 16% year-on-year EBITDA growth in Macau despite intense competition. The company maintains strict cost control and a premium market position, supporting a 5% rise in its share price after earnings. Looking ahead, Melco plans to launch the REM hotel in the second half of 2026, making it the only operator with new premium capacity in Macau, expected to drive further earnings and market share gains. The stock trades at 6.5 times forward EV/EBITDA with a 48% upside to a target multiple of 9.8 times, while risks include slower gross gaming revenue growth and execution challenges with the new property.