Star Entertainment Group are looking to boost their presence in Sydney with a new multimillion dollar hotel tower in The Star right across the shore from James Packer’s Barangaroo resort and casino.
Plans for the 200m tall tower featuring 360 rooms have already been submitted to the NSW government and are part of a $1.1 billion makeover that the casino and hotels group is banking on to increase its appeal to Chinese high-rollers.
If approved, the proposed development is scheduled to open in 2020 — the same time as James Packer’s $2 billion Barangaroo resort would featuring hotel rooms, restaurants, penthouses and gaming floors.
The development plans come as both entertainments group are hoping to lure in China’s VIP customers especially with Australia fast proving to be an attractive destination for Chinese tourists.
“The affluent Chinese middle class is on the rise and looking further afield. There’s an opportunity to capture some of that. In Sydney, occupancy rates at the high-end are at spillover capacity. There’s certainly demand that requires additional supply,” a Star spokesman told Fairfax.
Packer won the right to build a six-star hotel and Sydney’s second casino in the waterfront precinct of Barangaroo in 2013 after a panel found a need to “inject competition” into Sydney’s casino sector.
Since then, rivals Star Entertainment Group has announced plans to spend $100 million on upgrading its rooms and service apartments as well as add more suites to the existing Astral Tower in a bid to fight off existing competition.
The renovation plans come on the heels of an $870 million refurbishment to The Star between 2009 and 2013 which saw the introduction of 20 new restaurants, an expanded retail collection as well as the opening of Marquee nightclub.
Last year, the hotel group staged a remarkable comeback with net profits 52 per cent higher at $219 million.
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