Crown Resorts to spend $50 mln on new Melbourne hotel

Crown Resorts has agreed to pay $50 million ($41.3 million) to acquire an interest in four parcels of land opposite its flagship Crown Melbourne resort on which it plans to build a new five-star property.

The company has teamed up with Schiavello Group and is in the process of finalizing the terms of a joint venture, the company said in a filing with the Australian Stock Exchange.

In principle, Crown will acquire and manage the hotel, while Schiavello will acquire an office and showroom within the complex. No gaming facilities are planned for the property.

“While Crown continues its domestic and global expansion, Crown Melbourne remains our flagship resort and this project will ensure it remains the best integrated resort in Australia and amongst the best in the world,” chairman James Packer said.

Packer said the current occupancy rate at the company’s three Melbourne hotels was consistently above 90 percent, demonstrating “an urgent need for more hotel capacity” to meet both current and future demand.

The final development remains subject to a final joint venture agreement, financing and regulatory approvals.

 

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