Supplier News
Australia – Crown to change name but to keep focus on Australia
By Phil - 1 October 2013
James Packer’s casino group Crown will change its name to Crown Resorts to better reflect the mix of product that it is bringing to the market as it looks to operate high-end tourism facilities.
Crown’s shareholders will vote on the name change at its October 30 annual meeting but it is all but assured due to Mr. Packer’s 50 per cent ownership.
“My vision for Crown sees us as a leading global luxury brand, with a clear focus on Asian tourism,” Mr Packer said.
The rebranding comes as Crown ploughs ahead with plans to develop ‘integrated resorts’ in Sydney and Sri Lanka, whilst redeveloping the properties it operates in Melbourne and Perth.
The new branding is already apparent on the company website and on the title to its annual report in which Crown confirmed it would be keeping a firm focus on redeveloping its domestic casino assets.
Mr. Packer revealed: “In the year ahead, we will be focussing on the performance of our Australian resorts, including a continued focus on cost control. My vision for Crown sees us as a leading global luxury brand, with a clear focus on Asian tourism. During the last 12 months, Australia’s leading integrated resorts, Crown Melbourne and Crown Perth, have delivered an improved performance, despite evidence of weak consumer sentiment, particularly in Melbourne. The result demonstrates that by providing first class facilities, we can continue to attract domestic and international visitors to our resorts. The significant investment we have made in our Australian resorts has ensured they remain two of Australia’s premier tourist destinations, capable of competing with the best tourist facilities in the Asian region. The all-encompassing transformation of our properties has reinforced Crown’s position as one of the region’s leading operators of integrated resorts. In July 2013, the New South Wales Government invited Crown to advance to Stage Three of the New South Wales Unsolicited Proposal process in respect of our proposed development and operation of a six-star hotel resort at Barangaroo South on Sydney Harbour. Crown is continuing to work with the NSW Government as part of this process.”
Crown recorded a $396m profit in the 2012/13 financial year, falling by 23 per cent from the previous year with its Australian businesses posting mixed results due to weak consumer sentiment.
Rowen Craigie said the company was undertaking a “comprehensive review of back of house and front of house operational efficiency” to ensure the Australian resorts reached their potential.
He said: “With a property-wide refurbishment and expansion, the rebranding of Crown Perth from Burswood was completed in September 2012. This milestone signifies the transformation of the resort and enables it to leverage off the internationally recognisable Crown brand, firmly establishing Crown Perth’s ability to compete successfully in the international tourism market. Crown Perth’s offering will be further enhanced with the addition of Crown Towers Perth.”
Due to open in 2016, Crown Towers Perth will be a 500-room six-star luxury hotel with VIP gaming salons, restaurants, bars, resort and convention facilities.
Mr. Craigie added: “This extensive capital expenditure program has ensured Crown Melbourne and Crown Perth are world-class resorts, capable of competing with the best in the Asian region. Both resorts offer unsurpassed service, six-star luxury and a variety of entertainment experiences – a unique combination that underpins the strength of Crown’s leading global luxury brand. This investment in growth capital is progressively delivering benefits and is expected to be earnings and value accretive for shareholders.”
