The Star Entertainment Group may build a hotel in competition with the Barangaroo project that will be developed by Crown Resorts. The Star has revealed that is has plans to build a new hotel worth $500 million.
Sydney Hotel Development
The Star Entertainment Group is currently in the process of talks with the New South Wales government to build a hotel at its existing casino complex located in Darling Harbor, Sydney. The addition of the 360-room hotel would be part of a plan to turn the Star Casino into a six-star integrated casino-hotel resort.
The New South Wales government Minister for Trade, Tourism and Major Event, Stuart Ayres, noted that the hotel would have a large impact "on jobs and opportunities for Sydney." He said that this impact "cannot be underestimated."
In addition to talks with the New South Wales government, The Star is negotiating with Chow Tai Food and the Far East Consortium in Hong Kong regarding the Star Casino expansion. Chow Tai Fook has over four million members, with 1.4 million of those being VIP members. It also has some links with China Travel, a company that books approximately 50 million holidays per year for mainland Chinese tourists.
In order to ensure that the luxury hotel tower is a top hotel, The Star has contacted the Ritz-Carlton hotel brand with regards to potentially operating the hotel to ensure it keeps up the six-star standard.
Should the government give the green light to the luxury hotel project, it could be open for business by 2020, a year ahead of the projected date that the Crown Resorts six-star hotel is set to open in Barangaroo.
Crown's James Packer was awarded a license to develop a $2 billion casino project at Barangaroo. The casino resort is expected to bring in high roller players from China. At this time, The Star carries an exclusive license to operate a casino in Sydney, however the license will expire in 2019.
The Sydney Morning Herald carried a statement from a spokesperson from The Star: "We are in discussions with The Ritz-Carlton to progress branding of the proposed hotel tower. We will have a Ritz-Carlton as part of the Queen's Wharf Brisbane project and look forward to the prospect of a Ritz-Carlton in Sydney."
Star Claims Development was on the Cards
The Star has claimed that it would have upgraded its Sydney casino resort to keep in line with its recent improvements at its Brisbane resort. The casino operator explained that the move would have taken place whether or not Crown Resorts had plans to develop a rival casino at Barangaroo.