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Crown Resorts Limited (CWN)
is a publicly listed company on the Australian Securities Exchange (ASX).
Crown is one of Australia’s largest entertainment groups. The group’s core businesses and investments are in the integrated resorts sector.
In Australia, Crown wholly owns and operates two of Australia’s leading integrated resorts, Crown Melbourne Entertainment Complex and Crown Perth Entertainment Complex. Overseas, Crown also fully owns and operates Crown Aspinall's in London.
Crown holds a significant interest in Melco Crown Entertainment Limited (MCE), a company operating casino/hotel properties in Macau which include City of Dreams and Altira Macau as well as the Mocha Clubs business.
Crown also has a portfolio of other investments that complement its business.
In Australia, Crown wholly owns and operates two of Australia’s leading integrated resorts, Crown Melbourne Entertainment Complex and Crown Perth Entertainment Complex. Overseas, Crown also fully owns and operates Crown Aspinall's in London. Crown holds a significant interest in Melco Crown Entertainment Limited (MCE), listed on the NASDAQ operating casino/hotel properties in Macau which include City of Dreams and Altira Macau as well as the Mocha Clubs business. MCE has a 60.0% interest in Studio City and a 68.8% interest in Melco Crown (Philippines) Resorts Corporation.
Crown has announced plans to develop and operate an iconic six-star hotel resort, including VIP gaming facilities, at Barangaroo South, Sydney. In addition Crown has acquired a 34.6-acre site on Las Vegas Boulevard and Crown has entered into an agreement with Greenland Holdings Group, to jointly prepare a detailed proposal to develop the Queen’s Wharf precinct in Brisbane.
Crown acquired Betfair Group plc’s 50% equity interest in Betfair Australasia in August 2014 for consideration of $10 million taking it's ownership in Betfair Australasia to 100%.
In December 2014, Crown and BetEasy announced a joint venture (CrownBet) (67% owned by Crown) which involved the combination of BetEasy’s sports book business with the sports book business of Betfair.
Neither Betfair nor CrownBet operates retail premises, nor do they have an on-course presence; their services are exclusively provided via the internet or telephone.
Crown Resorts holds a 50% equity interest in the Aspers Group, which operates four regional casinos in the United Kingdom, in Newcastle, Stratford, Milton Keynes and Northampton (the latter in a joint venture with Kerzner UK Limited).
Caesars Growth Partners
Crown Resorts exercised its rights to acquire an interest in a newly formed entity, Caesars Growth Partners (CGP), the owner of certain assets, which were transferred to CGP from Caesars Entertainment Corporation (Caesars). These assets include a majority stake in Caesars Interactive Entertainment, the Planet Hollywood Resort in Las Vegas and a portfolio of bonds issued by Caesars.
The interest in CGP was acquired at a cost of US$22.6 million.
Crown Resorts holds a 24.5% equity interest in Cannery, which is based in the United States and has operations at the Meadows Racetrack & Casino in Pittsburgh, Pennsylvania, and Cannery Casino and East Side Cannery in Las Vegas, Nevada.
Crown’s Capital Expenditure Program
Crown has announced expected capital expenditure in the period from FY10 to FY17 of approximately $2.8 billion for investing in maintaining, improving and expanding its facilities in Melbourne and Perth to ensure its offering remains internationally competitive. At the end of FY14, approximately $1.8 billion of this investment had been made. The amount of $2.8 billion does not include the amounts of capital expenditure referred to in Crown’s announcements concerning Crown Sydney, the five star hotel joint venture at the site adjacent to Crown Melbourne, the Las Vegas site development and the Queen’s Wharf Brisbane proposal.
Crown’s capital expenditure on its Melbourne and Perth properties (as at 30 June 2014)
Crown’s capital expenditure program involves investment across the major aspects of Crown’s properties and includes maintenance, refurbishments and new construction activity.
Crown has previously completed such projects as the refurbishment of the Crown Melbourne gaming floor, Crown Metropol Melbourne, extension of the Mahogany Room and redevelopment of the “West End” at Crown Melbourne.
Construction is underway on Crown Towers Perth, a new six star luxury hotel at Crown Perth. The project is proceeding on schedule, with targeted completion by December 2016. Crown Towers will feature approximately 500 luxury hotel rooms and suites, villas, private gaming salons, restaurants, bars, a grand ballroom, convention centre, luxury retail outlets, resort pool and spa facilities and will bring Crown Perth’s capacity to 1,200 hotel rooms. Approximately $200 million of the $645 million total budget has been spent through to the end of January 2015.
Every year Crown’s Australian resorts attract approximately 25 million visitors making them amongst Australia’s most visited tourist attractions.
ACIL Allen Consulting estimated the economic contribution to Australian real GDP of Crown’s Australian resorts is up to $4.5 billion with Crown Melbourne contributing up to $3.1 billion and Crown Perth contributing up to $1.4 billion.
Direct and indirect full time employment impact estimated1 to be up to 26,000 people associated with Crown’s Australian resorts with up to 17,100 people at Crown Melbourne and up to 8,900 at Crown Perth.
Crown contributes two-thirds of its pre-tax profits to governments**.
Revenue from International Visitors
Approx. $1.1 billion of Crown’s $3.0 billion revenue in FY14 (approximately 37%) was estimated to be generated from international visitors.
**Taxes paid to Australian governments on Australian profits
Crown has announced plans to develop and operate an iconic six star hotel resort, including VIP gaming facilities, at Barangaroo South, Sydney with an anticipated gross project cost of $2.0 billion. Crown’s plan includes 350 hotel rooms and suites, luxury apartments, signature restaurants, bars, retail outlets, pool and spa facilities, conference rooms and VIP gaming facilities.
Following the passage of enabling legislation through the New South Wales Parliament, the Independent Liquor and Gaming Authority (“ILGA”) issued a restricted gaming licence to Crown on 8 July 2014. Crown cannot commence gaming at Crown Sydney until November 2019.
The development of the Crown Sydney Hotel Resort remains conditional upon receipt of planning approval as well as negotiating final legal agreements with the Barangaroo Delivery Authority and the appointed developer of Barangaroo South, Lend Lease.
The application for approval for amendments to the Barangaroo South Masterplan (including the proposed location of Crown Sydney) was lodged with the Department of Planning on 5 March 2015. The project remains subject to all necessary planning approvals and finalisation of agreements with the Barangaroo Delivery Authority and Lend Lease.
It is currently expected that the remaining planning applications can shortly be lodged and the remaining agreements finalised and signed shortly.
Sydney deserves one of the world’s great hotels on its magnificent harbour. My desire is for Crown to build the best hotel in the world at Barangaroo.
James Packer, Chairman, Crown Resorts Limited - Aug 2012
In August 2014, Crown announced that a majority-owned subsidiary had acquired a 34.6-acre site on Las Vegas Boulevard, which was formerly occupied by the New Frontier casino. The site was acquired through a foreclosure auction initiated by lenders to the former owner of the site.
The development plans for the site and the capital structure of the ownership entity are not yet finalised. However, it is expected that Crown will have majority ownership and Crown’s total equity investment will be approximately US$400 million toUS$500 million, with a total project budget of approximatelyUS$1.6 billion to US$1.9 billion.
Queen’s Wharf Brisbane
In October 2014, Crown together with its consortium partner, Greenland Holdings Group, lodged a response to the Queensland Government’s Request for Detailed Proposals for the Queen’s Wharf Brisbane site.
If their bid is successful, Crown and Greenland Holdings Group intend to jointly develop a luxury integrated resort at the Queen’s Wharf precinct, including a six star hotel and casino.
Crown intends to manage the integrated resort and have an ownership interest in that part of the precinct.
The assessment process being undertaken by the Queensland Government is ongoing.
The Crown Melbourne Entertainment Complex in Melbourne is one of the largest integrated resorts in the southern hemisphere comprising a casino, hotels, function rooms, restaurants, shopping and entertainment facilities.
In 2013, Crown was awarded the prestigious Australian Employer of the Year at the Australian Training Awards, following the 2013 Victorian Employer of the Year award by the Victorian Government. They have previously won both awards as recently as 2010.
In February 2014, Crown Melbourne was awarded the 2014 Casino / Integrated Resort of the Year at the prestigious International Gaming Awards (IGA) in London. Considered the definitive awards for outstanding performance in the industry worldwide, it recognised Crown Melbourne’s clear vision and innovative approach to attracting both Australian and international guests.
Crown Melbourne operates one of the largest single-site VIP operations in the world. Its three hotels offer approximately 1,600 rooms, including 31 luxury villas. Crown and the Schiavello Group are in the process of negotiating final agreements and finalising designs to develop and construct a new luxury five star hotel and apartment complex on a site adjacent to the Crown Melbourne complex.
Crown Melbourne is the largest single-site private sector employer in Australia with more than 9,200 people working on site.
The casino currently features 2,628 electronic gaming machines and has approval to operate 540 table games. The Crown Melbourne casino licence extends to 2050.
Crown Perth is Perth's premier integrated resort encompassing a casino, two international hotels, a state of the art convention centre, and award-winning food and beverage outlets.
Crown Perth currently has approval to operate 2,300 electronic machines and 295 table games. The approval will increase to:
- 2,400 electronic machines and 320 table games in January 2016; and
- 2,500 electronic machines and 350 table games in January 2017.
The casino licence extends for the life of the Burswood Property Trust (currently until 2060). Like the Crown Entertainment Complex in Melbourne, it has an extensive international VIP clientele. Crown Perth is in the unique position of being the only venue in Western Australia to offer electronic gaming and table games. Crown Perth is the largest single-site private sector employer in Western Australia with more than 5,700 people working on site.
Crown Perth, has a new $645 million six-star hotel currently under construction, which will add another dimension to Crown Perth’s already extensive offering of hotels, resort style pool facilities, world-class convention centre, gaming options, restaurants, bars, nightclub, 2,300 seat theatre and day spa. The six-star Crown Towers Perth is expected to open in 2017. The hotel will provide approximately 500 luxury rooms, bringing Crown Perth’s capacity to 1,200 and will include VIP gaming salons, restaurants, bars and conference facilities.
Crown Aspinall's is an exclusive high-end London casino. It is one of only five licensed high-end casinos in London's prime West End entertainment district.
Crown Aspinalls is an exclusive club like no other and has satisfied the lifestyles of the London elite and international gamblers, since the 1960’s. From its aristocratic beginnings, the club has continued to evolve into a modern gaming club to suit every taste.
City of Dreams Macau
City of Dreams offers a wide range of entertainment options, luxury accommodation, international dining and designer fashion brands. Located in the heart of Cotai, City of Dreams offers everything from the best hotels to the most exciting shows. Cotai is easily accessible from Macau’s ferry terminals, border gates and the airport. As a spectacular centrepiece of the fast developing Cotai, City of Dreams takes Macau’s entertainment industry to new heights, making it a prominent hotspot for tourists and locals alike.
Melco Crown is now building a fifth hotel tower at City of Dreams, which is being designed by award winning architect Zaha Hadid and represents a significant addition to the wide array of amenities and attractions that City of Dreams already offers its customers.
Situated in the heart of Taipa, Melco Crown’s Altira Macau is an oasis of sophistication offering spectacular panoramic views of the Macau peninsula.
Awarded the “Forbes Five Star” rating in both Lodging and Spa categories by the Forbes Travel Guide in 2010, 2011 and 2012.
The extraordinary 38-story complex features over 200 lavishly appointed guest rooms, including 24 deluxe suites and 8 villas, all showcasing Macau’s skyline. With interiors created by world-renowned designer Peter Remédios, Altira Macau combines comfort and style to elegant effect. Offering impeccable service tailored to each guest, the hotel is home to a host of world-class culinary experiences, chic clubs and an award winning day spa.
City of Dreams Manila
In the Philippines, Melco Crown, through its 68.8% owned subsidiary, Melco Crown (Philippines) Resorts Corporation, has an interest in a consortium that developed and operates City of Dreams Manila, an integrated resort in Manila.
City of Dreams Manila conducted a successful grand opening in February 2015.
The resort offers a world-class collection of brands and attractions, including three hotels with a combined 950 hotel rooms under the Crown Towers, Nobu and Hyatt hotel brands, a family entertainment centre in collaboration with Dreamworks, exciting nightlife including Pangaea and Chaos nightclubs and live performances, numerous food and beverage outlets, retail offerings and market-leading gaming facilities including approximately 270 table games and approximately 1,700 gaming machines.
City of Dreams Manila is located on approximately 6.2 hectares at the gateway of Entertainment City, Manila, close to Metro Manila’s international airport and central business district.
Studio City Macau
Melco Crown has a 60% equity interest in Macau Studio City, an integrated resort project being developed in Macau jointly by Melco Crown and New Cotai Holdings, LLC. New Cotai Holdings, LLC is an entity controlled by funds managed by Silver Point Capital, L.P. and Oaktree Capital Management, L.P.
Studio City is a large-scale cinematically themed integrated entertainment, retail and gaming resort, which is scheduled to open later in 2015. Upon completion, Studio City will include significant gaming capacity, five star hotel offerings and various entertainment, retail and food and beverage outlets to attract a diverse range of customers. Studio City is designed to capture the increasingly important mass market segment, with its destination theming, unique and innovative interactive attractions, and strong Asian focus.
The Studio City site is located directly adjacent to the Lotus Bridge immigration checkpoint and one of the proposed light rail stations.
Crown Resorts Limited
8 Whiteman Street
+61 3 9292 8888
Fax: +61 3 9292 8808
The General Overview, Services, Products and Projects information for this profile was last edited on 10 Jun 2015.