SkyCity’s Horizon Hotel to open on August 1
The hotel is connected to the upcoming New Zealand International Convention Center and the SkyCity Auckland Precinct.
New Zealand.- SkyCity Entertainment Group has confirmed that construction has finished on the Horizon Hotel, a five-star hotel in Auckland. It will open on August 1.
The hotel, which has 303 rooms, is linked to the New Zealand International Convention Center, currently under construction, and the SkyCity Auckland Precinct. With Grand by SkyCity and SkyCity Hotel, the combined number of rooms in the complex totals 1,000.
The SkyCity precinct and the New Zealand International Convention Center are expected to commence operations in 2025.
In June, the company issued a filing updating its earnings guidance for the fiscal year 2024. SkyCity now expects underlying group EBITDA of between NZ$280m (US$173.5m) and NZ$285m (US$176.6m) and net profit after tax (NPAT) between NZ$120m (US$74.3m) and NZ$125m (US$78.1m). It also announced the suspension of dividends for the second half.
SkyCity said it revised the financial figures due to a challenging economic environment affecting customer spending, the delayed opening of the Horizon Hotel and a potential increase in Adelaide casino duty following the South Australian Court of Appeal’s ruling on the interpretation of provisions in the Adelaide Casino Duty Agreement regarding loyalty points. The company plans to release full-year results on August 22.
S&P affirms SkyCity BBB- rating
S&P Global Ratings has maintained SkyCity Entertainment Group’s BBB- long-term issuer credit rating and BBB- long-term issue ratings on the company’s debt. It forecasts that credit metrics will weaken in fiscal years 2024 and 2025 but will stay within the tolerances of the current ratings.
It said: “The stable outlook reflects our view that SkyCity is taking creditor-friendly actions to avoid downward pressure on the rating by prioritizing debt reduction over the next two fiscal years.”
S&P adjusted its earnings forecast for SkyCity downwards, noting subdued economic conditions in New Zealand leading to decreased revenues in both gaming and non-gaming sectors. The debt-to-EBITDA ratio is expected to peak at 2.9x in fiscal 2024s, with proactive debt reduction measures anticipated to improve the ratio to 2.0x by fiscal 2026.
