When U.S.-based investment giant Blackstone Group completed its acquisition of the ailing Australian operator Crown Resorts for US$6.5 billion in June 2022, there wasn’t much clarity as to what Blackstone had in mind with regard to the future of Crown.
Now, however, it appears that the parent company is more than ready to put down some serious capital in efforts to rebuild the casino brand back to its former glory, this time without the regulatory mishaps.
Kathleen McCarthy, global head of real estate for Blackstone, recently said in an interview with the Australian that the company has already invested “hundreds of millions of dollars” in Crown behind the scenes, and is now ready to start “ transforming the customer experience and what they are seeing.”
The bulk of McCarthy’s comments related specifically to Crown Melbourne, the operator’s flagship property. Her comments mirror those of Blackstone President Jon Gray, who also told the Australian earlier this year that the company plans to “invest significant capital there and enhance the asset, which we think will be great for the community and great for tourism there as well.”
“Melbourne is an incredible piece of real estate, an incredible property, and a great location, but it also needs capital investment to make it an exciting and fresh place for folks to come,” McCarthy said in her recent interview. “We see an opportunity to physically open up the property to make it feel a little different.”
Of course, no discussion about the Australian gaming landscape would be complete without some mention of Crown’s chief competitor and counterpart Star Entertainment, which has been on its own odyssey of turmoil, fines and internal realignment in the last 24 months.
When asked about potential buyout opportunities, McCarthy maintained that Blackstone is primarily focused on Crown and the “opportunity to transform the business.”
However, she also hinted to the Australian that “ in the market, particularly in a dislocated environment, we see a lot of opportunities ahead to be investing in the themes we like.”
