Hotels

Crown to continue construction of $2.2bn Barangaroo property

Crown has revealed it will continue construction on its multi-billion-dollar Crown Sydney Hotel Resort in Barangaroo.

The company appears to be weathering the impacts of the COVID-19 pandemic better than most, with news it had secured additional funding to support the build.

In a statement to the Australian Securities Exchange, Crown revealed it intends to continue construction of its $2.2 billion Crown Sydney project after agreeing to terms for a $450 million project finance facility with “three relationship banks”.

The facility remains subject to final credit approvals and long-form documentation; however, absent any further delays arising from the impact of COVID-19, the Crown Sydney Hotel Resort remains on track for completion by the end of the year, Crown said.

The project cost remains unchanged, with the gross project thought to amount to approximately $2.2 billion, with its net project cost expected to be approximately $1.4 billion.

According to Crown, the company’s current cash balance sits at approximately $500 million, with the ability to secure over $1 billion in additional debt facilities.

Crown Towers Sydney: Harbour Bridge King Room (Crown)

Crown CEO and managing director Ken Barton said: “As a result of [the] announcement, Crown is well placed to withstand an extended period of closure.”

Currently, there are more than 1,300 people employed on the construction of Crown Sydney, which the company expects to be maintained until completion.

In the lead-up to the full opening of Crown Sydney, Crown hopes to recruit over 2,000 people to work at the hotel.

Scale of job cuts revealed

It comes as the company revealed around 95 per cent or over 11,500 of its employees had been stood down, following the “cessation of gaming activities and other non-essential services” at Crown Melbourne and Crown Perth late last month.

According to Crown Resorts’ website, the company employs approximately 18,500 people across 700 different roles, with changes to operations expected to reduce its underlying costs to between $20 to $30 million per month.

To support employees during this period, Crown said it had agreed to provide an ex gratia payment of two weeks’ pay to full- and part-time employees who have been stood down (other than senior management), and a lump sum payment of $1,000 to eligible casual workers.

Employees will also be able to draw down on existing annual and long-service leave entitlements in a “range of flexible manners”, Crown said.

Barton, along with certain other senior management, have taken a 20 per cent reduction in fixed remuneration until 30 June 2020.

The company’s chair and non-executive director fees have also been reduced by 20 per cent until 30 June 2020.

Barton said Crown had registered for the Commonwealth Government’s JobKeeper payment, and is currently working through the implementation of this scheme.


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

News

“Unfortunately, the world changed”: McGowan suspends WA border reopening indefinitely

The western state will be keeping its borders firmly closed, as Premier Mark McGowan buys more time to bolster citizens against a “flood of the disease”.

Share

CommentComments

Tourism

Thailand to resume ‘Test & Go’ quarantine waiver from February

Pack your suitcase and ready your sinuses for a holiday in Thailand that promises to greet you with a lovely PCR test.

Share

CommentComments

Hotels

AUSSIE FIRST: Accor unveils next gen Mercure Hotels with new Melbourne property

While away your Friday afternoon by perusing through some stunning pictures of Accor’s swanky new-look Mercure in Doncaster.

Share

CommentComments

Aviation

Qantas threatens to slash cabin crew wages by “almost half” in latest union pay row

by Ali Coulton

The national carrier is once again facing condemnation from unions after applying to scrap its long-haul crew contract in an effort to “push through” a new deal.

Share

CommentComments

Aviation

Operation nest egg: Air New Zealand helps relocate rare kiwi chicks

The airline is doing gods work by flying these three little cuties to their new home where they were treated to an all-you-can-eat worm buffet.

Share

CommentComments

Tourism

Say ‘Aloha’ to the Hawaiian Islands and take a trip that gives back

by James Harrison

Check out the beauty, wonder, and excitement of the islands of Hawaii and explore a holiday destination where you can malama.

Share

CommentComments

Cruise

Crystal Cruises suspends operations as parent company files to windup business

The Hong Kong supercruise operator is winding up operations, leaving the future of its subsidiaries unknown.

Share

CommentComments

Tourism

Celebrity chef duo Gary Mehigan and Manu Feildel star in new tourism campaign for Japan

The staff at Travel Weekly have been rewatching our favourite anime to reminisce about Japan, but Gary and Manu might appeal to a broader audience than Pokemon reruns.

Share

CommentComments

Tourism

Aussie tourism took off in December, but remians well below 2019 levels

If these stats are anything to go by, we’ll be back to worrying about overtourism and carbon footprints in no time! Wait…

Share

CommentComments

Destinations

US slaps “do not travel” warning on Australia as Europe tightens border restrictions

The prospect of fewer American tourists milling about at Darling Harbour we can deal with, but if we have to go one more year without a European summer we’re going to go over the deep end.

Share

CommentComments

Aviation

Union survey reveals transport workers asked to return while COVID positive

Workers who answered the survey, which included passenger transport and aviation workers, are also calling for free RATs. That’s rapid antigen tests, not rodents as we first assumed.

Share

CommentComments

Wholesalers

“This isn’t a label we wish to keep”: Intrepid recertified as world’s largest travel B Corp

The tour operator has gone through another extensive company-wide audit to maintain its title, so why is it looking to pass the baton you may ask? Click here.

Share

CommentComments