Additional hotel capacity at the Queen’s Wharf project will see the Star Entertainment Group (SGR) generate an additional A$43 million (US$30 million) in earnings per year starting in FY24, according to analysts from J.P. Morgan.
Around 1000 rooms are being added to the project, which is set to open its casino and hotels in FY23.
This extra room capacity will bring an additional A$98 million in hotel revenue per year to its Queens Wharf project, and, along with its hotel expansion in Sydney, will bring SGR’s total rooms from 1,800 in FY17 to 3,800 in FY23.
“Investing in the domestic hotel offering while optimizing the loyalty program is expected to drive earnings growth for SGR. Queens Wharf remains the key long-term driver, although increased CapEx, regulations and softness from Asian tourists remain key risks,” said the analysts.
The Queens Wharf Brisbane IR is scheduled to open in late 2022. The IR will offer four luxury hotels, 50 restaurants, bars and cafes, exciting new retail opportunities and more than 12 football fields of the public realm.