Blackstone buys out Crown Resorts

by | 12 Jul 2022 | Portfolio

Crown Resorts Melbourne. Imagery courtesy of Crown Resorts.

Private investor Blackstone has acquired Crown Resorts in the firm’s largest investment to date in Asia Pacific.

Following an initial investment in Crown two years ago, Blackstone’s latest transaction comprises three premium resort and casino properties in Melbourne, Perth and Sydney, which both parties will work together to transform into world-class entertainment destinations.

Australian-headquartered Crown’s core businesses include integrated resorts, Crown Melbourne and Crown Perth, as well as Sydney’s latest premium hotel resort and dining precinct at Crown Sydney.

Achieve potential

Alan Miyasaki, head of real estate acquisitions Asia, Blackstone, said: “We are thrilled to become the new owner of Crown, bringing our expertise in hospitality to help the company achieve its full potential as a leading travel and leisure company.

“We first invested in Crown two years ago, seeing the tremendous underlying potential of the company and its people. We look forward to working with the teams at Crown and applying our experience in owning and operating marquee hospitality brands around the globe with the highest levels of ethics and integrity to create something unique for employees, local communities, and visitors.”

Strong Australian presence

Chris Tynan, head of real estate Australia, Blackstone, said: “This is a great opportunity that plays to Blackstone’s strengths – investing significant capital and resources to rebuild Crown into an iconic destination for travel and leisure that everyone can be proud of. Blackstone has built a strong Australian presence over the last 12 years. We look forward to supporting the local economy, creating jobs, and attracting visitors to Crown’s exceptional properties.”

Steve McCann, Crown Resorts’ CEO, said: “Today, Crown emerges as part of the Blackstone family, which is the start of a new era for this great company and its 20,000 team members. Over recent times, Crown has undergone immense transformation, and we know under Blackstone’s ownership, we will realise our vision to deliver world-class entertainment experiences and a safe and responsible gaming environment.

“Australian tourism has entered a recovery phase, and we believe this trend will continue. Crown’s suite of outstanding assets has built a loyal customer base over the past 28 years, and we are excited about the opportunities ahead of us as we revitalise Melbourne and Perth and celebrate the addition of Sydney. With Blackstone’s investment and expertise, we’re confident Crown will cement its place on the global stage as one of the world’s leading owners and operators of integrated resorts.”

Hospitality track record

Blackstone has built a strong track record in the wider hospitality, travel, and leisure sectors. The firm completed the sale of The Cosmopolitan of Las Vegas this year, after transforming the property into a vibrant destination on the Las Vegas Strip. During its eight-year ownership, Blackstone implemented significant operational changes, developed a best-in-class management team, and invested significant capital to renovate 3,000 guest rooms and enhance F&B offerings.

In addition, Blackstone owned Hilton Hotels Corporation for 11 years, during which it helped double the size of the company to more than 5,300 properties and 400,000 employees worldwide. Its other recent investments in these sectors include the acquisition of an eight-hotel portfolio across Japan’s top tourist destinations; acquisition of Bourne Leisure, a premier British holiday company; and joint acquisition of Extended Stay Hotels.

Related Articles

Loan deal backs greener hotels

Loan deal backs greener hotels

Australian hotel investment group Pro-invest has agreed a green loan with Aareal Bank, refinancing a portfolio of five Holiday Inn Express properties across Australia. The arrangement refinances Holiday Inn Express properties in Brisbane, Adelaide city centre,...

HSH pauses for breath

HSH pauses for breath

With hotels in Hong Kong, Shanghai and Beijing, the company saw 2023 as a year of recovery, as the Chinese authorities opened up travel after the pandemic, from February. But these three properties are still lagging their performance compared with years prior to the...

Wyndham builds momentum in Asia Pacific

Wyndham builds momentum in Asia Pacific

The ramp up follows a successful 2023 for the group, during which it opened 158 hotels across the region, and signed 222 more into its growth pipeline. Wyndham CEO Geoff Ballotti kept up the pace in early March, signing no less than 27 new hotel agreements during a...

Hilton buys Graduate Hotels

Hilton buys Graduate Hotels

Hilton has agreed to acquire the Graduate Hotels brand, adding a new lifestyle offering to its portfolio. The hotel giant will pay USD210m for Graduate, taking on 33 operational hotels, and two pipeline properties. With Hilton's backing, the Graduate brand is set to...

Asia milestone for IHG Hotels & Resorts

Asia milestone for IHG Hotels & Resorts

IHG is celebrating the milestone of opening more than 1,000 hotels across Asia Pacific. The achievement comes after a busy year of openings across the region, as the group looks to continue growing its presence across its many brands. Of the total, more than 700...