EVENT Hospitality & Entertainment has outlined plans to expand key hotels including its QT Sydney following an increased valuation of its property portfolio.
At the group’s AGM on Fri, CEO Jane Hastings said the total fair value of Event’s property had increased to $2 billion, well above the book value of $1.2 billion, and that it provided excellent future growth opportunities.
Plans in the pipeline include an expansion of the QT Sydney to add new rooms and conference and event facilities as part of a wider development that will involve retail space and a commercial tower on George St.
The group is also planning to incorporate a hotel in its redevelopment of the George St cinema site in Sydney, while in Melbourne plans are being progressed for a major expansion of the city’s Rydges property to include new rooms and a conference centre.
Other plans include an expansion of conference spaces at QT Melbourne, a new hotel and entertainment development alongside the soon-to-open QT Wellington in New Zealand and new facilities at the Thredbo ski resort including a gondola to replace the Meritt’s chair lift.
Upgrades are also planned at several properties including Rydges Queenstown, QT Gold Coast, QT Canberra and Rydges North Sydney.
While Event’s hotel division had enjoyed strong growth, Hastings said the newly opened QT Perth had made its debut in a tough local market and that it was expected to suffer negative RevPar growth for several years.
“As a result, it will take at least three years for this investment to generate a positive contribution to earnings,” she said.
Source: traveldaily