Adelaide Casino owner SkyCity flags plans for a second hotel
Adelaide casino operator SkyCity has flagged plans for a second hotel ‘over time’ as it completes a $330 million expansion, which includes a 12-storey luxury hotel.
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SkyCity Entertainment has told investors of plans for “potentially a second hotel in Adelaide over time” but the focus remains on completing the $330 million ongoing casino expansion and hotel build by October next year.
The company, which is also completing a convention centre and hotel construction project in NZ, provided no further details on the timelines around this plan.
“In regards to future hotel plans in Adelaide … we are always thinking of ways to expand business and are open to market opportunities, but our main focus are the major projects that are currently underway,” a spokeswoman for the group told The Advertiser in response to a request for more information.
But Adelaide received a specific mention for the first time as part of SkyCity’s longer term hotels strategy across Australia and NZ, in the group’s updates released as part of its financial results package on Wednesday.
SkyCity has a “medium term focus on evaluating hotel opportunities in existing precincts” and is in the midst of an internal restructure to position its hotel portfolio as a stand-alone business.
Its Riverbank 12-storey luxury hotel and expansion is on track be completed by October 2020, creating another 800 jobs and attracting new tourists to SA, Adelaide Casino general manager David Christian has said.
That milestone will also be celebrated with a new name for the casino — to change from Adelaide Casino to SkyCity Adelaide — and a brand refresh.
SkyCity’s Adelaide revenues fell 0.2 per cent to $148.7 million in FY19, from $149 million in the previous year, contributing 6 per cent to group revenues.
The venue’s earnings before interest and taxes fell 6.8 per cent to $21 million on continued disruption caused by building works and also included $1.7 million of restructuring costs.
The casino saw stable local gaming performance with premium activity improving, but offset by weaker results from the main floor.
The state’s sole casino operator until at least 2035 said it remains optimistic about the introduction of ticket-in ticket-out (TITO) technology on its main casino floor and the use of note acceptors following the State Government’s review of gambling regulation in SA due to be completed by the end of year.
In the meantime, the group’s current financial priorities include driving improved performance from its Adelaide business.
A “topping off’ ceremony for the new facility is expected to take place next month, followed by the opening of The Guardsman 24/7 bar and restaurant in the Adelaide Railway Station concourse in November.
Walker Corporation’s 1500-space car park is progressing satisfactorily and is set to be completed in time for the casino to lease its 750 spaces next year.
Overall, the NZ-focused group made a $NZ144.6 million ($A137 million) profit in the 12 months to June 30, down 14.7 per cent from a year ago.
The result was impacted by the sale of its Darwin property and as international gamblers got lucky on their bets.
Revenue was up 0.8 per cent to $NZ822.3 million ($A781.6 million).
The dividend was unchanged with shareholders to be paid 11.7647 NZ cents per share, unfranked, on September 13.