Australian casino giant Star Entertainment Group is set to sell the Sheraton Grand Mirage Resort Gold Coast property. This announcement comes amid very difficult times for the company that have seen it lose public trust.
The operator was negatively impacted by probes into its business that discovered severe regulatory failures. Forced to pay two fines of over a hundred Australian dollars and to introduce remediation plans, Star Entertainment Group quickly began losing steam.
The company’s deterioration is what led to the current sale of the Sheraton Grand Mirage Resort Gold Coast. As reported by the company, Star’s 50%-owned Australian Wattle Development agreed to sell the venue for $128 million (converted to USD).
According to Star Entertainment Group, the sale price represents a 2023 calendar year multiple of 21x. In addition, it represents $434,100 per hotel room.
Star Entertainment Will Sell the Property to the Karedis and Laundy Families
Australian Wattle Development added Sheraton Grand Mirage Resort Gold Coast to its portfolio in 2017 when it purchased the property in a $93 million deal.
The current buyers are entities owned by the Karedis and Laundy families, Star Entertainment noted. Known for their activity in Australia’s liquor and hospitality sector, the families will reinforce their portfolio with another big property.
The sale is still subject to approval from the Queensland Office of Liquor and Gaming, which will evaluate the transfer of a liquor license.
Around two weeks ago, Star Entertainment sought a resolution regarding a proposed casino tax in New South Wales. The company fervently opposed the proposed measure, arguing that it will further strain its waning business. It entered negotiations with the NSW government, hoping to find a resolution to the problem.
Unfortunately for the casino company, the Labor Party remained firm on introducing the tax. However, NSW Treasurer Daniel Mookhey agreed that the tax needs some modification. In addition, he assessed Star Entertainment’s position and the company’s claims that it may be forced to introduce layoffs if the controversial new tax goes live.
In other news, Star Entertainment was forced to postpone the opening of its Queen’s Wharf Brisbane property to April 2024. The company said that the project is simply not feasible under the previous deadline and modified its projections for the venue’s completion.
Earlier this year, Scott Wharton, Star’s former CEO, resigned from his position, further adding to the company’s woes.