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Crown Resorts to look at hotel property fund

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Hotel agents and property trust analysts say pricing will be crucial if Crown Resorts’ plan to float its Australian hotel property portfolio was to succeed.

Crown Resorts has flagged it is looking at creating a separately-listed property trust to own 49 per cent of its multi-million dollar hotel portfolio.

At the group’s annual general meeting in Perth on Thursday, Chairman Rob Rankin confirmed the creation of a listed property trust to hold its massive hotels was under serious consideration although final sign-off by the board was still required.

There are no true comparative Australian listed hotel trusts and one analyst said the trust could have a value of between $600 million (£488.48 million) to $1 billion (0.81 billion), based on the sale price of luxury hotel assets, which on average are about $450 million (£366.50 million).

“Like any property float, it all depends on the yield, price and asset quality,” said one analyst, who declined to be named.

“We have seen proposed floats fall over if even one of these criteria are not met.”

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Paul

The author Paul