Crown may fight for second license
On May 16, Australia-listed Star Entertainment announced plans to build a deluxe new hotel and apartment tower at its Jupiters Casino complex on the Gold Coast, representing an investment of $850 million. According to the Australian Financial Review, Tony Fung’s Aquis Australia, which has acquired a parcel of land in Surfers Paradise, may be Matt Bekier’s chief competition in “Goldie.”
Fung’s partners in the project are Chinese developers Tandellen and the Chinese Government-owned CCCC International Holding. The Aquis board recently met in Queensland to discuss an international design competition for the planned casino, but Fung may have to face off with another casino giant—James Packer’s Crown Resorts—for the second license in the Australian state.
Star, meanwhile, says a master plan for its Gold Coast property would create a “truly globally competitive” integrated resort.
“We are very confident in the long-term tourism prospects of Australia,” CEO Bekier said. “If you look at the outbound tourism trends, that gives us a lot of confidence. We have the right partners, who don’t just have capital but the right tourism credentials as well.”
Bekier told the Australian he hasn’t seen a proposal for a Crown Gold Coast casino. “We have to control our own destiny,” he said. “We are building up something that makes economic sense. Subsequent stages of the master plan, you would only develop those when you have greater clarity over what the competitive environment looks like.”
Star’s new hotel tower—which could begin leasing this year—isn’t the end of the company’s development plans in the region. Bekier said future options could add up to five hotel or apartment buildings, tropical gardens and other entertainment facilities, all designed to tie into Broadbeach Island, the Pacific Fair shopping district and the Gold Coast Convention Centre.
Star’s partners in the venture are Hong Kong-based partners Chow Tai Fook Enterprises and the Far East Consortium. “We want to develop as much as we can with partners so we get a capital light investment,” Bekier said, adding that the company would only develop the additional towers “when we get the demand proven up through pre-sales.
“Once you have the pre-sales, you can pre-fund it and build it and it will give you the confidence that you can go again.”
Star is talking to Chinese tourism operators including China Travel Service to help identify the hotel brands favored by Asian travelers. “For subsequent towers we will look at the mix of customers we are getting and where we see demand by 2018 to determine the brands, but there will be nothing under 4.5 stars,” said Bekier.
