CASINO

Australia’s Star inks $3B casino project in Brisbane, SkyCity posts close to $114M in annual profit

TAGs: brisbane, Jasmine Solana, matt bekier, Nigel Morrison, skycity, SkyCity Auckland, The Star Entertainment Group

It’s all systems go for the Star Entertainment Group’s $3-billion casino resort project in Brisbane.

Australia’s Star inks $3B casino project in Brisbane, SkyCity posts close to $114M in annual profitMatt Bekier, chief executive at the newly renamed Star Entertainment Group, announced that they have signed development agreements with the Queensland government, The Australian reported.

The Brisbane development, which is still subject to planning approvals, will feature a 1,100-room premium hotel, residential apartments and a casino, among other facilities, according to the report.

Last July, the Star Entertainment Group—formerly known as Echo Entertainment—beat rival James Packer’s Crown Resorts’ bid to build a new casino in the Queens Wharf site.

Star Entertainment, along with partners Chow Tai Fook Enterprises and Far East Consortium, envisioned a project that will take on the high caliber attractions in Macau and Singapore. The Australian quoted Bekier saying, “The redevelopment of Queens Wharf Brisbane has the potential to deliver significant and positive change for the people of Brisbane.”

The project will be named The Star and is expected to open in 2022.

In August, the company announced its Treasury and Jupiter casinos will get a name makeover as part of their rebranding plans. The Jupiter Hotel and Casino will be renamed The Star, Gold Coast, while Treasury Casino and hotel will be renamed Treasury by the Star, according to the news outlet.

Star Entertainment Group already changed the name of its Sydney casino to The Star.

Positive outlook: SkyCity posts $114M in annual profit

Meanwhile, entertainment group SkyCity posted a glowing report for the company’s New Zealand and Australia properties.

In a statement, CEO Nigel Morrison said it’s a record financial year for the company, which exceeded $1 billion in revenue for the first time in FY15 after “five years of sound planning and solid, strategic investment across the business, including significantly improving offerings for international VIP customers, a strong focus on premium dining experiences and a rejuvenation of main gaming areas across the properties.”

SkyCity Auckland, the company’s flagship property, increased its revenue by as much as 6.2 percent to $209.3 million, while normalized EBITDA was up by 13.6 percent to $89.6 million. SkyCity Hamilton also improved its revenues and earnings, with normalized revenue at $18.1 million (up 11.3 percent) and normalized EBITDA at $7.8 million (up 27.9 percent).

In the meantime, SkyCity has started building the New Zealand International Convention Center in Auckland. The project is expected to cost $580 million, and the company said it will be funded from future operating cash flows and an undrawn $300 million debt facility.

“SkyCity’s substantial investment in this project is going to significantly benefit Auckland and the wider New Zealand economy, with more than 1,000 jobs in the construction phase and around 1,140 hospitality jobs once the center is up and running,” Morrison said.

The convention center is expected to be completed in the first quarter of 2019.

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