Calls grow for Crown Melbourne’s renovation amid falling standards
Once hailed as Australia’s most luxurious 바카라 hotel, Crown Melbourne is now facing growing criticism for its outdated facilities and slipping standards, nearly three years after its A$8.9 billion (€5.4 billion) acquisition by US investment firm Blackstone, according to a report by the Australian Financial Review.
The 바카라 complex, which opened in the 1990s, was once likened to London’s Ritz by legendary 바카라 mogul Steve Wynn. Today, however, Crown Melbourne’s ageing rooms, dated interiors, and lack of refurbishment have left it a shadow of its former self.
When Blackstone took over Crown Resorts in 2022, it pledged a significant overhaul of the Melbourne precinct, promising upgrades across hotel towers, restaurants, and entertainment venues. But most of those promises remain unfulfilled.
Meanwhile, new luxury entrants like the Ritz-Carlton and W Melbourne are offering modern rooms and commanding rates of up to A$1,000 (€610) per night. In contrast, Crown Melbourne’s rooms now average around A$384 (€234) — and even at that price, some guests say the offering feels overpriced.
Crown Towers, one of the flagship hotels within the precinct, has not been refurbished since 2011. Guests have reported worn furniture and dated décor, questioning whether the hotel still qualifies as five-star.
Australia becoming increasingly competitive
Property industry insiders say Blackstone faces a serious dilemma in a market that is becoming increasingly competitive. New developments, including Melbourne Place on Russell Street and multiple Marriott openings, are lifting the standard. One property developer, speaking anonymously, said the firm may be reluctant to spend heavily without clear returns. “It’s hard to justify major refurbishments if you can’t recover the costs in such a competitive market,” he said.
Former Victorian Premier Jeff Kennett, who oversaw Crown Melbourne’s launch in 1994, attributes the resort’s decline to changes in ownership. He suggests the property began to lose its character and high standards when billionaire James Packer took over from Lloyd Williams, who had been closely involved in daily operations. According to Kennett, the shift continued under Blackstone, whose role as a distant investor has further removed the personal touch that once defined the venue.
The drop in standards coincides with deeper financial strain. Before the takeover, Crown was rocked by money laundering scandals and links to organised crime. Multiple inquiries led to over A$700 million (€427 million) in fines and forced Packer to sell.
Regulatory trouble behind delays
In the 2023 financial year, Crown’s earnings before tax and other items dropped by 80 percent to just A$24 million (€14.6 million), far below earlier expectations of A$700 million (€427 million).
Though Blackstone has worked to fix regulatory issues and regain licences in Melbourne and Sydney, it has struggled with new rules, such as mandatory gambling cards and cash restrictions, all of which have reduced gaming revenue.
