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 is also seeking approval to construct a 400 room six-star hotel as part of a new tower development adjacent to Crown Melbourne.
Crown and a majority-owned subsidiary have also acquired a 34.6-acre vacant site on the Las Vegas strip to develop a project called Alon Las Vegas. Crown and its partners are continuing design work on the project as well as developing a number of funding options. We believe we have the ideal opportunity, with the right partners, investors and property, to progress this development and deliver value for shareholders.
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. We 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 9,400 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 has entered into a joint venture to develop a new 400 room six-star hotel and apartment development on a site adjacent to Crown Melbourne. The proposed development, designed by internationally acclaimed British architecture firm Wilkinson Eyre will add new capacity to Melbourne’s tourism and business events industries to host major events and includes a proposal to upgrade existing public spaces including Queensbridge Square.
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 5,800 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.
Melco Crown Entertainment Limited
As at May 2016, Crown's interest in Melco Crown was approximately 27.4%.
Melco Crown Entertainment Limited (MCE) was initially established as a joint venture company in 2004 with Hong Kong listed Melco International Development Limited to pursue new gaming ventures in Macau. MCE is a developer and owner of casinos and entertainment resort facilities. MCE is one of six companies granted concessions or sub concessions to operate casinos in Macau. Melco Crown's operating businesses include City of Dreams, Altira Macau and the Mocha Clubs. In City of Dreams Macau, an iconic fifth hotel tower at City of Dreams is progressing as planned. The new hotel tower will represent another strong catalyst for growth, particularly in the premium end of the market, when it is due to open in the first half of 2017.
Altira Macau is designed to provide a casino and hotel experience that caters to Asian rolling chip customers and players sourced primarily through gaming promoters. Altira Macau offers a luxurious hotel experience with its internationally-acclaimed accommodation and guest services. In 2015, it was awarded the Forbes Five-Star rating in both Lodging and Spa categories by the Forbes Travel Guide for the sixth year running.
Macau Studio City
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 in October 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.
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.
Crown Resorts is progressing its plans to develop and operate an iconic six-star hotel resort, including VIP gaming facilities, at Barangaroo South in Sydney. Crown Sydney, located on the harbour, will be the city’s first six-star hotel resort. Crown’s plan includes 350 hotel guest rooms and suites, luxury apartments, signature restaurants and bars, retail outlets, pool and spa facilities, conference rooms and VIP gaming facilities. The resort is proposed to open in early 2021.
The “iconic” status of the hotel resort is assured through the engagement of Wilkinson Eyre, one of the world’s best architect practices. They have designed a landmark building that will be instantly recognisable around the world and will complement Sydney icons like the Sydney Harbour Bridge and the Sydney Opera House.
The Crown Sydney Hotel Resort is expected to contribute the following to the NSW economy, in the first full year of operations (Allen Consulting Group Assessment, June 2013):
1,250 additional ongoing direct jobs after construction;
Employment (direct and indirect) is estimated to increase by 2,800;
Gross State Product (GSP) is estimated to increase by $442 million by 2025;
Crown made an upfront payment of $100 million to the NSW Government in July 2014, upon the issue of the VIP gaming licence;
Crown will also deliver a significant increase in gaming tax revenue for NSW taxpayers;
The total of licence fees plus gaming taxes paid by Crown over the first 15 years of full operation must exceed $1 billion.
The Crown Sydney Hotel Resort is expected to provide a major boost to the NSW Tourism sector, including:
Helping NSW to become more competitive with domestic and international tourist destinations;
Helping NSW to compete for major domestic and international events;
Assisting NSW in attracting a greater share of Asia’s booming outbound tourism market;
Attracting high net worth tourists and increasing visitor spend;
Providing a strategic addition to the stock of hotel accommodation in Sydney;
The public observation deck on level 65, approximately 250 meters above ground, will offer local, interstate and international visitors with panoramic views across Sydney’s spectacular harbour;
The location of a globally recognised building on the harbour near the Sydney Harbour Bridge and the Sydney Opera House will also assist in attracting mainstream international tourists to Barangaroo.
Crown announced in August 2014 that a majority-owned subsidiary had acquired a 34.6-acre vacant site on the Las Vegas strip to develop the Alon Las Vegas project. Crown and its partners are continuing design work on the project as well as developing a number of funding options.
The Las Vegas market is undergoing a resurgence and Crown believes it has the ideal opportunity, with the right local partner in Co-Chairman and CEO of Alon, Andrew Pascal, financial support from Oaktree Capital Management and what is considered to be the best piece of undeveloped land on the Las Vegas strip.
Former President and COO of Wynn Las Vegas, Andrew Pascal is an accomplished entrepreneur and business leader with more than 20-years’ experience in the luxury hospitality and leisure entertainment industries. During that time, he founded and built businesses that delivered innovative solutions to the land-based and digital casino industries. Andrew has worked extensively in both Las Vegas and the San Francisco Bay Area and he brings to this new resort venture a unique blend of entrepreneurial passion, creative insight, and operating discipline.
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.
Online Social Gaming
Crown acquired a 60% interest in online social gaming operation DGN Games LLC (DGN) in July 2015 for consideration of US$27.5 million. In addition, Crown has contributed US$5 million to DGN to fund growth. DGN is based in Austin, Texas and is a leading developer of online social games.
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.