Australian casino operator Crown Resorts has undertaken another move to dispose of its international assets, local media has reported. The company, led by billionaire James Packer, is selling a Las Vegas Boulevard parcel, previously planned to be developed into a luxury casino resort.
Real estate firm CBRE has been tasked with listing the 35-acre site, which had once been home to the New Frontier Hotel and Casino. The parcel was identified as a prime property at the heart of the Las Vegas Strip, one of the world’s largest casino gambling hubs.
The site is located right opposite to the emblematic Wynn Las Vegas and Encore at Wynn Las Vegas properties.
Crown Resorts bought the portion of land in 2014, unveiling plans to build the Alon Las Vegas integrated resort that, among other things, would have featured 1,100 hotel rooms. The casino operator was backed by asset management firm Oaktree Capital Management. Former Wynn Las Vegas President Andrew Pascal also joined the ambitious project.
Although Crown Resorts was very enthusiastic about acquiring the Strip portion of land and thus fulfilling a long-time dream of entering the Las Vegas casino market, financial challenges delayed the project’s progress.
Last December, Crown Resorts announced that it was scrapping development plans completely. The announcement came after 18 of its staff members were detained in China for allegedly promoting gambling services, an activity considered illegal under Chinese law. The arrests hit the Australian company’s VIP business and impacted its profitability quite negatively.
To mend the difficulties that arose from Crown Resorts’ China trials, the operator announced last December that it would not proceed with the planned demerger of its international assets from its domestic ones, would seek a potential buyer for the Las Vegas Strip site, and would reduce its stake in its Macau joint venture with Lawrence Ho’s Melco International Development. The Australian company also explained that it wanted to focus more of its attention on its domestic properties, with those being Crown Perth, Crown Melbourne, and Crown Sydney, currently under development and slated for 2021 opening.
Crown Aspinall’s gaming club in London has remained the Crown Resorts’ only international asset, after the company recently sold its whole stake in the former Melco Crown joint venture to partner Melco International Development. As a result from the transaction and to mark the beginning of a new era in its development, Melco Crown, which operates properties in Macau and the Philippines, was renamed to Melco Resorts & Entertainment.
Crown Resorts is currently 48%-owned by business magnate James Packer. In 2015, the businessman stepped down as Chairman of the company. Several months later he also quit his post as a Director at the operator. Mr. Packer announced in early 2017 that he would resume his Director role as John Alexander was named Executive Chairman. Last week, regulators gave the nod to Mr. Packer’s return to Crown Resorts’ board.
