Crown Perth and owners closing in on decision on multi million-dollar upgrade

Crown Resorts’ private equity owners and directors are closing in on a decision on a proposed multi million-dollar upgrade of the group’s Perth casino and hospitality complex to capture more spending from cashed-up West Australians.

It is understood Crown Perth and Crown Resorts’ flagship Melbourne business have submitted wishlists with Blackstone, which is evaluating the expansion and refurbishment proposals with a view to putting them before the Crown board and making an announcement by as early as May.

Crown Perth, WA’s biggest single-site employer with a 6000-strong workforce, has made no secret of its pursuit of more restaurants for the Burswood complex to help meet visitor demand for both family and top-end dining.

While Crown is not commenting on the content of the spending proposals, it is understood the management in Perth led by chief executive David Tsai is also looking at new attractions to expand the local offering.

Crown Perth has benefited from bumper trading since reopening three years ago after a brief pandemic-enforced closure.

Even though international travel has resumed, its hotels and restaurants are still doing strong business, thanks mainly to local visitors.

While rising interest rates and other cost-of-living pressures are increasing across the nation, spending by West Australians has yet to noticeably soften.

According to Australian Bureau of Statistics data, spending in WA on cafes, restaurants and takeaway food hit a record $698m in January to be up $200m on three years earlier.

And this week’s NAB figures on retail spending for February showed WA bucking the broader national trend to post an almost 1.5 per cent uptick.

Having brought Nobu restaurant chain to Perth under James Packer 11 years ago, Crown Perth will likely be eyeing other upmarket franchises as it looks around for new restaurants, particularly as it looks to fill a long vacant first floor in the six-star Crown Towers hotel.

However, other proposals given consideration include a redevelopment of its main open-air car park, as well as revamps elsewhere to spruce up the riverside property, including a potential upsizing of the Crown Towers pool.

Mr Tsai, who joined Crown Perth in December after running MGM Resorts International’s Midwest business in the US, said on his arrival that he would not simply be adopting ideas from elsewhere.

“I’ve worked in four different jurisdictions in the US, and one thing I have learned is that there’s commonality to great hospitality experiences, but at the same time every market is completely different; you really have to understand the local norms, preferences and culture,” he said. ‘

“But every hospitality and entertainment destination evolves, you bring in new ideas, concepts and experiences that are quite global.

“We really want to see what does this market need and what the locals here will really appreciate.”