Crown-Star merger: Matt Bekier spruiks benefits for Gold Coast of creation of "BHP of hospitality and gaming"
A Crown-Star merger would create the “BHP of hospitality and gaming” with reach into new markets, Star's CEO says. Read the full story here.
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A Crown-Star merger would create the “BHP of hospitality and gaming” enabling the Gold Coast to tap into an expanded marketplace including capital cities Melbourne and Perth.
Star Entertainment Group CEO Matt Bekier said Star’s indicative proposal on Monday to merge with Crown Resorts would create a company “bigger than Qantas” with 30,000 staff if approved.
Mr Bekier said the offer from Star, building two new towers on its Broadbeach Island which is already home to the Star Grand and Darling hotels, would greatly benefit the Glitter Strip.
“It’s all good news because in the short-term the investments that we are making on the Gold Coast won’t change,” Mr Bekier said.
“The (Broadbeach Island) masterplan is approved for another three towers. What this deal does for the Gold Coast is in the short term it gets us access to a larger domestic customer base so we can sell the Gold Coast more broadly...not just into Sydney but also into Melbourne and Perth (where Crown has casinos).”
Mr Bekier brushed off a suggestion the Gold Coast - if a new entity was approved by Crown shareholders – could become a minor player within a bigger company.
“As a tourist destination southeast Queensland is the hotspot, if you look at the medium term growth, population growth, economic development, migration and hopefully the (2032) Olympics.
“That is all fantastically attractive to an operator like us. We will seek to take full advantage of our position in that market.”
Mr Bekier said an $8 billion Crown takeover offer from private equity group Blackstone - which has significant integrated casino and hospitality venues in the US and Europe - had “got the ball rolling” on the Star-Crown merger talks.
“We think that all shareholders will be better off if we create this big Australian-owned company which is kind of going to be like the BHP of hospitality and gaming that will allow us to compete globally,” he said.
“Hopefully the Crown shareholders will see the benefits.”
Mr Bekier acknowledged regulatory hurdles, such as approval from federal competition regulator – the Australian Competition and Consumer Commission – to overcome before the merger could go ahead.
“But we would not have gone forward with this if we thought we were going to fail. I think the regulatory hurdles can be overcome. We have had conversations with governments and regulators in all four states (NSW, Qld, WA and Victoria) and it’s fair to say we have had good hearings and a relatively warm reception. But ultimately the decision is up to the Crown shareholders.”
Destination Gold Coast chairman Paul Donovan said a merger would pay significant dividends for the city.
“There will be huge opportunities out of this such as the impetus to get the expansion of the Gold Coast Convention and Exhibition Centre which is something we will really need once we get back to hosting business events and large conventions again,” he said.
“With Crown and Star’s reach in Melbourne and Sydney, as well as overseas, this will potentially mean more business from those locations and eventually from international destinations.”
Gold Coast Mayor Tom Tate said it would open the door to the long-awaited revamp of the Sheraton Grand Mirage Resort on The Spit.
It is the location where Star has also eyed building the Gold Coast’s first beach club.
“It is due for an upgrade because while Christopher Skase did a great job back in the 1980s, like any wonderful resort it needs a facelift,” he said.
”The location is perfect and I would like to see them do a trial (of a beach club) on the beachfront so if you are walking along Federation Walk and want to enjoy five-star service on the beach then why not?
“There could be serious flow-on effects and as a city we should encourage that.”
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THE Star Entertainment Group boss Matt Bekier says the Gold Coast is in prime position to capitalise on the reopening of international borders in 2021.
The casino and tourism resort group CEO urges developers to continue adding new unit and hotel stock to the city as a key attractor for overseas visitors and is confident of a post-COVID tourism bounce-back.
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Mr Bekier, who this week visited the Gold Coast for the first time since July, said he was “confident 2021 would be a good year” and insisted 2022 and 2023 would be “great” years.
“In due course international travel will be back and based on research recently undertaken in China, the level of interest in us as a destination has not changed and Australia ranks very highly,” he said.
“This tells us that nothing has fundamentally changed in the medium term so as soon as the airlines are back up I expect the tourists will come back.
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“Star has been able to use that time to progress our Dorsett development and this will stand us in good stead because we will have fresh new product.”
More than 26 storeys have now been built and work is expected to be completed in mid-2022.
Mr Bekier said planning continued on the next stage of the Star’s expansion, a proposed 63-storey supertower which would include both residential and hotel rooms.
“The pre-sales are progressing well on the next tower though it has been difficult with COVID stopping us travelling,” he said.
“Long-term if we get the Olympic Games in southeast Queensland in 2032 we need to make sure we have as much new product as possible.
“You’d struggle to find a place better suited to this than the Gold Coast.”
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