Crown is one of the biggest casino operators in the world and can be responsible for the demolition of James Packer’s dream of making a luxury five stars hotel! They insist that the won’t let him do it unless a casino is attached to it! Crown’s target is to use the casino license in NSW that is currently owned by their biggest competitors, gaming company Echo Entertainment Group, until 2019. Crown’s executive chairman Mr Packer said that he wanted to see a luxury five or six stars hotel at the harbourside Barangaroo development in Sydney which will feature a luxury casino for high class players according to his vision. Crown has recently applied to regulators to increase their share percentage to Echo from 10 to 25 per cent but Rowen Craigie , Crown’s chief executive believes that in two years and with lot of work Crown can achieve an exclusive deal with Barangaroo’s developer Lend Lease.
Craigie mentioned to reporters: “In Australia, the economics of developing five or six star luxury hotels, whether in Perth, Sydney or anywhere else, without a gaming component to cross-subsidise those economics – you’re not going to see those developments in this country.”
Also, “In the last 20 years there hasn’t been any luxury hotel of scale that hasn’t been associated with a casino.
“We’ve made it clear for Barangaroo Sydney to get a six star luxury hotel, we need to have a VIP gaming component.” Rowen Craigie said.
The Company posted a full year profit of about $513.3 million last week , which is about 50% higher than last year’s profit.
However Rowen Craigie isn’t so excited with these results because the companys profit is a result of mediocre and low level players and not premium ones. He believes in quality rather than quantity and this is the main reason he wants this casino in this brand new hotel.