Star Entertainment Group Launches $400 Million Dorsett Hotel
Date: September 2018
Location: Broadbeach Island, Gold Coast, Australia
Name: The Dorsett Hotel – opening 2022
No. of Keys: 316 rooms and 423 residential apartments
Owner: Star Entertainment Group…The Dorsett Hotel will deliver the ASX- listed Star its third hotel as part of its broader $2 billion plans for the precinct with a vision that will see seven towers on the Broadbeach island site.
Developer: The $400 million development will offer hotel rooms and residential apartments, marking the first foray into the Australian market for the international Dorsett brand.
The construction commencement comes as the Star last week announced its underlying profit increased by 20.3 per cent to $258 million over the financial year.
However, the Group’s statutory profits, which takes into account the wins of its high roller gamblers at the Star’s casinos, fell by 44 per cent to $148 million.
The development signifies the latest addition from Destination Gold Coast Consortium, a joint venture between The Star Entertainment Group and Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium.
The partnership currently have investment projects across Brisbane and the Gold Coast exceeding $4.5 billion.
The Broadbeach island development follows on from the partnership’s multi-billion-dollar projects at Brisbane’s Queen’s Wharf and the $140 million acquisition of Gold Coast’s Sheraton Mirage.
Dorsett Hospitality International currently own and operate hotels in Hong Kong, China, Singapore, Malaysia, Japan and the United Kingdom.
Dorsett vice chairman Datin Jasmine Abdullah Heng said the hotel group’s strategy is to target China’s fast growing affluent middle class market.
The 316 hotel rooms will feature across the tower’s lower levels, while the residential apartments, ranging from 54sq m to 109sq m, will form the upper levels.
Hutchinson Builders was recently announced as the preferred contractor for the tower development which will boost the Star’s wider complex to almost 1400 rooms.
The Star Entertainment Group chairman John O’Neill said the introduction of a Dorsett hotel will bring with it increased awareness in the global market.
“This latest commitment showcases the confidence we have in the future of the coast and its potential to become an even more established primary location for intrastate, interstate and international visitors.”
Premier Annastacia Palaszczuk described the Gold Coast development as a “shot in the arm” for the local economy at the breaking ground ceremony.
“The project will provide 1800 construction related jobs,” Palaszczuk said.
Another 500 jobs will be created once the hotel is up and running.
Price: AUS$400m
Price per Key: AUS$1,265,823 (assuming this is just for the hotel)
THPT Comment: If Star’s casino profits dropped by 44%, maybe a wise strategy to move further into hotels. A valuable location for Asian-based Dorsett as an entry to Australia.
First Seen: The Urban Developer