Star embarking on expansion
Australian financial firm Macquarie Research has issued a report saying the country’s Gold Coast may not be able to support two large-scale casino resorts. The analysis comes as the Queensland government considers approving a second IR in the region.
Simply stated, the Gold Coast is “not the most attractive market” for a new integrated resort, Macquarie analysts said, in a note reported the Gold Coast Bulletin. U.S. gaming and hospitality company Hard Rock International announced earlier this month that it’s pursuing an AU$2 billion (US$1.45 billion) IR development in the vicinity.
Macquarie analysts advised the Queensland Government to assess “the net community benefits and determine whether a second IR deters the Star Gold Coast from completing its recently approved A$2 billion master plan.” The team believes an investment of more than A$400 million “would struggle to deliver an appropriate return.”
Star Entertainment has been given the go-ahead to expand its Star Gold Coast property. Phase I included the construction of five new towers at the existing property; the recently approved expansion will add new F&B outlets, entertainment and retail options and new resort facilities. At full build-out, Star Gold Coast will feature 3,000 hotel rooms and apartments.
Star has said that each stage of its expansion master plan will be dependent on “the market and competitor landscape at the time.”
Channel 9 News recently reported that Carey Park at Southport is “the most likely location for a so-called global tourism hub on the Gold Coast,” despite the “dis-endorsement” of local council members in October 2017.
