Asia bulletin: The Star puts the Sheraton Grand Mirage Resort up for sale
Australian operator The Star Entertainment has put its Sheraton Grand Mirage Hotel up for sale, according to local media.
The Star previously disclosed an equity drive to raise AU$545m (US$362m).
However, securing the sale of a property purchased by The Star in 2017 will by no means be assured, with two previous listings failing to materialise in an eventual sale.
The completion of a sale may prove vital, however, given the operator’s anticipated losses of up to AU$1.11bn due to the legal cases associated with its anti-money laundering breaches and expected changes to taxation rates in New South Wales.
In February 2023, The Star reported group revenue down 1% for H1 2023, with earnings impacted by operational changes arising from the Bell and Gotterson Reviews into the operator’s regulatory negligence.
Interestingly, the operator’s H1 2023 revenue from the Gold Coast – where the Sheraton is located – rose 30% on pre-Covid levels. In fact, The Star’s revenue from the Gold Coast was its highest ever recorded in this half year.
Although it may seem surprising that The Star is willing to sell a destination in its most lucrative region, it’s worth noting The Star Gold Coast also operates out of this district. It could be that the operator is looking to consolidate its gaming profits for the Gold Coast, to be generated exclusively from its The Star-branded destination.
The Star also owns the Gold Coast Convention & Exhibition Centre and generates profits by hiring the space to interested parties.
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