Crown Resorts to offload London casino to Wynn Resorts
Crown Resorts is set to sell its London property to Wynn Resorts so that it can concentrate on Australian operations.
The sale to the Vegas-based hotel giant is for an undisclosed amount, but is aligned with Crown’s aim of investing in its Australian assets to “deliver sustainable growth in our core market.”
“Our priority is to deliver new and elevated experiences for our guests in Melbourne, Perth, and Sydney in line with our strategy to be the leading entertainment destinations in Australia,” Crown Resorts chief executive David Tsai told The Australian.
Crown has operated the high-end private members club near Buckingham Palace since 2011 but is now not considered to be part of the company’s core operations. It generated revenue of $40.1 million last year, jumping 83.9 per cent gain on 2023’s $21.8 million.
The flagship Melbourne property posted revenue of $1.5 biilion.
Crown will work closely with Wynn’s to ensure a smooth transition, with the sale expected to be completed mid 2025.
Crown has faced regulatory pressure and subdued tourism, which has led it to pivot away from a casino-centric model towards a more integrated resort experience. This shift involves significant investments in new bars and restaurants and aims to emulate successful global models seen in places such as Las Vegas and Macau.
Challenges Crown has faced include sluggish international tourism recovery – although there is some improvement – the impact of cashless gaming, and intense competition. Despite these hurdles, Crown is seeing some improvement, particularly from a weaker Australian dollar.
Key initiatives include partnerships with renowned local establishments (Golden Century, Icebergs) at Crown Sydney and the development of new food districts in Perth and Melbourne including cricket-inspired Indian diner and sports bar Kolkata Cricket Club.
Rival Star Entertainment is also grappling with financial difficulties, prompting its largest shareholder Bruce Mathieson to express concerns about its future, saying Star will either “go bankrupt or be bought” unless it improve its finances in the near term.
Jonathan Jackson, 14th January 2024
