The Star puts Sheraton Grand Mirage up for sale
The Sheraton Grand Mirage resort on the Gold Coast is 50 per cent owned by The Star Entertainment Group.
Australia.- The Star Entertainment Group is putting the Sheraton Grand Mirage resort on the Gold Coast up for sale for AU$200m as part of its equity drive to raise AU$545m. The beachfront property is 50 per cent owned by The Star, alongside Hong Kong Stock Exchange-listed Far East Consortium and Chow Tai Fook, which each have 25 per cent.
The joint venture between the three companies acquired the Sheraton in early 2017 for AU$140m, with The Star contributing AU$40m of equity for the 295-room hotel. The Star indicated its plans to dispose of the property in February, following anticipated losses of up to AU$1.11bn.
Queensland properties performed strongly, achieving record domestic revenues. However, the performance of The Star Sydney was negatively affected by stricter operating restrictions from mid-September onwards as a result of the Adam Bell SC’s inquiry and changes to the NSW Casino Control Act.
The company has announced several operational initiatives that aim to boost its trading performance by an estimated AU$40m on an annual basis. These include improving operating efficiency, enhancing customer experience and responding to increased competition in Sydney with loyalty benefits and pricing strategies.
These measures are projected to have a marginal impact on the last quarter of the full-year 2023. The group is still prioritising remediation actions to facilitate its return to suitability.
Far East Consortium and Chow Tai Fook also hold 25 per cent each in the AU$3.6bn Queens Wharf casino and resort project in Brisbane.