Blackstone Anticipates Crown Resorts Overhaul to Cost Millions

The Blackstone Group, the globally recognized US private equity giant, acquired Crown Resorts, the leading Australian casino operator, last summer. At the time of the announcement, the price tag of the deal was a staggering AU$8.9 billion ($6.5 billion). However, despite the initial investment to acquire Crown Resorts, The Blackstone Group revealed that it has already spent hundreds of millions of dollars more to help revitalize and overhaul Crown Resorts in the upcoming years.

In a recent interview for The Australian, Blackstone’s global co-head of real estate, Kathleen McCarthy, spoke about the company’s intentions to invest further in Crown Resorts’ Melbourne property. She explained that Blackstone has already invested “hundreds of millions of dollars” in the property as it prepares to completely transform the customer experience.

According to McCarthy, the company is delighted about this investment and the exciting journey that lies ahead. She spoke about Crown’s Melbourne property, explaining that it represents an excellent location. However, McCarthy added that Crown Resorts Melbourne “needs capital investment to make it an exciting and fresh place for folks to come.”

“We have invested hundreds of millions of dollars (behind the scenes), now we get to the really exciting part, which is transforming the customer experience and what they are seeing. We remain very excited, and we are just really beginning the journey here.“

Kathleen McCarthy, global co-head of real estate at The Blackstone Group

Transforming the Experience to Attract More Visitors

When asked about other possible investments, McCarthy said that Blackstone explores additional opportunities. Still, she added that an ongoing focus for the company is the transformation of Crown. According to McCarthy, Blackstone anticipates attracting a wide range of guests at the Melbourne property, including Australians and visitors overseas. She outlined that this can be achieved through investment in new and engaging experiences, such as shopping or food outlets, that can make the property even better.

“We’re really focused on the work ahead of us at Crown and the opportunity to transform the business,“

added McCarthy

Focusing on the bigger picture, McCarthy said that Blackstone prioritizes the transformation of quality real estate. Such initiatives can help bring operational assets, boost cash flow and at the same time, elevate the experiences for the visitors, she said. Finally, McCarthy outlined that the company continues to explore different investment opportunities.

The gambling sector in Australia has seen quite a lot of turbulence lately. With local governments scrutinizing operators and ongoing changes to the established regulations, fears about overspending and gambling harm continue to rise. Yet, the changes to the gambling sector are on a government level, reaffirming the commitment of lawmakers to curb problem gambling and reduce gambling harm.