Yahoo Finance Packer’s billion dollar Barangaroo gamble
Billionaire James Packer has announced the signing of a billion dollar construction deal with developer Lend Lease to build “the best hotel in the world at Barangaroo.”
Related: Lend Lease secures Barangaroo funds
The agreement represents a major milestone for Mr Packer who has for some time been redeploying his vast inheritance in an attempt to become Australia’s leading gaming and casino mogul.
This move looks to have Mr Packer closer than ever to having a gaming establishment in Australia’s most populous city.
Related: Crown wants world's best hotel for Sydney
Sydney already has The Star casino which is run by rival gaming group Echo Entertainment. Crucially, Echo Entertainment holds the monopoly casino licence in Sydney.
Crown chief financial officer Ken Barton said if Crown was to operate a gaming facility in Sydney it would require the NSW government to issue a new licence, or it would have to be done as part of the existing licence which is held by Echo Entertainment Group, the operator of The Star casino in Sydney.
"I guess that's part of the two-year program as well: working through a licensing scenario," Mr Barton said.
The best hotel in the world
"Sydney deserves one of the world's great hotels on its magnificent harbor. My desire is for Crown to build the best hotel in the world at Barangaroo. Crown's record demonstrates we can deliver a centrepiece that will draw millions of tourists. A Crown integrated resort at Barangaroo would boost the economy, create thousands of new jobs, contribute significant tax revenues to the State Government and enhance the overall attractiveness of Sydney as a first class international tourist destination,” Mr Packer said in a statement.
Mr Packer said incorporating a facility for high rollers was "necessary to provide the commercial underpinning for any development and for the operation of a world-class six-star hotel resort".
What’s in a 6 star rating?
Based on current official ranking systems, 5 stars is the top benchmark of quality in service, facilities and design that an establishment can hold.
The Star Ratings Australia website denotes 5 Star properties as typifying “excellence across all areas of operation. Guests will enjoy an extensive range of facilities and comprehensive or highly personalised service relevant to the accommodation type. Properties at this level will display exceptional design quality and attention to detail.”
While claims of a 6 star rating can be put down to marketing hype, the comments clearly show that Mr Packer is serious about lifting the bar and creating a unique hotel and gaming experience.
