Home Real Estate Crown Resorts to look at hotel property fund

Crown Resorts to look at hotel property fund

by Jonathan Adams

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.”

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more