New Zealand’s SkyCity Entertainment Group has been granted government approval to purchase a 1.01-hectare plot of land in Queenstown to develop a new five-star hotel.
The acquisition is seen as a substantial strategic development for SkyCity, with the company having previously pointed to Queenstown – a major international holiday destination due to its abundance of ski resorts and adventure sports – as a growth opportunity in the premium segment. SkyCity owns and operates two casinos in the city – SkyCity Queenstown with 12 tables and 86 EGMs, and Wharf Casino with six tables and 76 EGMs.
According to management, the company’s Queenstown properties drove an 18% increase in VIP business for the six months to 31 December 2018.
SkyCity reported revenue of NZ$6.5 million from Queenstown for the same period.
In approving the land acquisition, New Zealand’s Overseas Investment Office said, “The applicant intends to use the land to develop a five-star hotel that will complement its existing entertainment facilities in Queenstown and help attract international visitors.”