The Star casino group seems to still be willing to expand its reach to Queensland amid the problems that its rival Crown Resorts has faced after the unexpected resignation of James Packer from the group. The Star wants to open a second big destination, aiming at Queensland as a site that would bring more gambling tourists to its casino.
Last night, Matt Bekier, who is the Chief Executive Officer of The Star, welcomed politicians and celebrities at the opening of the brand’s new luxury Darling Hotel. The latter is set to form part of the Gold Coast casino complex of the company, in a project that has been estimated to approximately AU$850 million together with the refurbishment of the already existing facilities.
As mentioned above, The Star has set its eyes on attracting more gambling tourists to its properties. At this point, such a goal could be manageable, especially considering the fact that Sydney has been turning into a desired destination for international high-roller players, with the major property of The Star being hosted there, and the Crown Resort’s Barangaroo project expected to be added in 2021. Still, the competition of Crown Resorts is not what it used to be, with the Group looking to dispose of its non-core assets and become more focused on making its Melbourne flagship venue more attractive to Chinese VIP players.
Unlike Crown Resorts and its strategy to expand its balance sheet over the past half a decade through aggressive purchases and development, The Star seems to have chosen a more measured approach when it comes to funding its expansion over a longer period of time and in collaboration with some Asian partners. The returns expected by the company from any of its multi-billion-dollar projects would mostly depend on the number of international tourists, which according to Government projections is expected to increase by approximately 75% over the next decade.
The Star Continues Queensland Projects’ Development
The Star has demonstrated its intention to continue the development of both its Queensland venues, including the one on the Gold Coast and the one in Brisbane.
The casino and gambling operator’s Gold Coast project is planned to feature up to five towers in the pipeline. The first one of them has already been given the green light with all necessary approvals and is set to see its construction started after the 2018 Commonwealth Games. The four remaining towers have managed to pass most regulatory difficulties. They are expected to add another AU$2 billion to the cost of the enormous gambling venue project.
The new towers that are planned to be built as part of the company’s Gold Coast are set to be constructed over the next eight to ten years. They are to be rolled out individually and the construction timing is to depend on the sale of apartments.
In addition, The Star has invested in its partnerships with Hong Kong companies Chow Tai Fook and Far East Consortium. The companies are also known as the company’s partners that fund its Brisbane-located Queens Wharf casino project.
- Author
Olivia Cole
