With its AU$8.9 billion ($6.5 billion) acquisition of Crown Resorts, a significant Australian casino operator, this summer, the Blackstone Group, a well-known US private equity behemoth, grabbed the public’s attention. Despite the size of the acquisition, Blackstone has indicated that it is willing to make more investments totaling hundreds of millions to revitalize Crown Resorts in the coming years.
In a recent interview with The Australian, Kathleen McCarthy, Blackstone’s global co-head of real estate, talked about the firm’s ambitious goals. McCarthy said that Blackstone had already invested “hundreds of millions of dollars” in the Melbourne site of Crown Resorts, preparing for an entirely new level of client experience.
McCarthy emphasized that while Crown’s Melbourne site is advantageously positioned, it requires significant financial investment to become a thriving destination. McCarthy underlined her excitement for this investment and the exciting path ahead.
“We have invested hundreds of millions of dollars (behind the scenes), now we get to the really exciting part, which is transforming the customer experience and what they are seeing. We remain very excited, and we are just really beginning the journey here,” stated Kathleen McCarthy.
Attracting a Diverse Audience Through Transformation
Blackstone’s focus, according to McCarthy, is still on transforming Crown Resorts. The corporation plans to draw a wide variety of visitors to the Melbourne site, including Australians and tourists from other countries. To increase the overall appeal of the property, this goal will be accomplished by making investments in fresh and interesting activities, such dining and shopping establishments.
“We’re really focused on the work ahead of us at Crown and the opportunity to transform the business,” McCarthy emphasized.
McCarthy went into further detail about Blackstone’s overarching strategy, emphasizing the need of changing high-quality real estate to improve operating assets, boost cash flow, and improve the visitor experience. She also mentioned that the business keeps looking into other investment options.
The gambling industry in Australia has seen substantial changes as local governments have increased their surveillance of operators and altered legislation. Concerns about excessive spending and danger from gaming are becoming more prevalent. However, the government’s commitment to treating problem gambling and lessening its negative impacts is reflected in these regulation improvements. Crown Resorts’ reinvention is a calculated attempt to respond to this shifting environment and offer a more pleasurable and responsible gaming experience.
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