Burswood and Six Continents to Form Joint Venture for New Hotel Development

Burswood and Six Continents Hotels and Resorts (Australia) Pty Limited (formerly Bass Hotels and Resorts) this week entered into a non-binding heads of agreement to develop new hotel accommodation at the Burswood International Resort Casino complex.

Whilst contractual terms and conditions are yet to be finalised, the heads of agreement provides for the development of a new 300-room, 3½-star hotel located on vacant land adjacent to the Burswood Convention Centre, together with the construction of a 500-bay car park beneath the new hotel.

Burswood and Six Continents Hotels will form a joint venture to construct the new hotel and to own and operate both the new hotel, to be named ‘Holiday Inn Burswood’, and the existing 413-room, five-star hotel, expected to be renamed ‘Hotel Inter-Continental Burswood’. Burswood will continue to manage the food, beverage and meeting room facilities within the existing hotel as well as food and beverage operations within the new hotel.

The proposed $50 million hotel is planned to be operational by December 2002 and the venture is strategically important to both Burswood and Six Continents Hotels.

Burswood Managing Director, Mr John Schaap, said it would enable the Company to capitalise on opportunities associated with peak business periods at the Resort.

“There is a high level of demand for greater accommodation capacity as well as an alternative style of accommodation at the Resort, particularly during conventions and events,” Mr Schaap said.

The combination of five-star and 3½-star accommodation options with Burswood’s new 1,800-capacity grand ballroom, scheduled to be operational from January 2002, is expected to consolidate the Resort’s position as a market leader in Australia’s convention industry.

“Offering a broader range of accommodation facilities will substantially boost our appeal as a corporate, convention and leisure destination, within local, national and international markets,” Mr Schaap said.

He also said the combined management of the two hotel facilities by Six Continents Hotels would create a more diverse hotel offering for Burswood catering to both mid-level and deluxe accommodation markets.

A major refurbishment of the five-star hotel is due for completion by late September 2001, which will be further enhanced by the proposed Inter-Continental branding.

Chief Operating Officer for Six Continents Hotels’ Australia, New Zealand and South Pacific, Mr Tony South, said the global infrastructure and selling power of the Six Continents Hotels group would greatly improve the profile of Burswood throughout Asia and the world.

"The new hotel development will complement Burswood’s already strong reputation as one of Australia’s premier resort destinations, and the worldwide network of Six Continents Hotels will help to create a much stronger market position for the Resort,” Mr South said.

He said the Burswood venture was also an important part of Six Continents Hotels’ strategy for the Asia Pacific region, which includes the rapid introduction of the Inter-Continental brand.

Six Continents Hotels and Resorts is the Asia Pacific’s largest branded hotel chain, with 163 hotels and 41,400 rooms in 23 countries and territories. The group leads the market in North America and has a strong presence throughout Europe, the Middle East and Africa. Collectively, the group either owns, operates or franchises more than 3,000 hotels and resorts worldwide including Inter-Continental, Crowne Plaza, Holiday Inn, Parkroyal and Centra properties.

Mr Schaap said full details of the new venture would be disclosed once contractual negotiations had been finalised.