James Packer to Build Australia's Largest Hotel at Casino in Melbourne

James Packer's Publishing & Broadcasting Ltd., Australia's biggest casino owner, plans to build the largest hotel in the country at its Melbourne gaming house, seizing on growing demand for gambling and tourism. The third hotel at Australia's largest casino will cost approximately A$300 million ($267 mil) and increase accommodation by more than 40%.

Packer, Australia's richest man, opened his first gaming house in Macau in May and has led $1.5 billion of casino acquisitions this year after selling most of his media assets to buyout firm CVC Asia Pacific. International visitors to Victoria, Australia's second-most populous state, rose 5.5% to 1.5 mil in the year to June, according to the government.

"The proposed new hotel will target the international leisure market but will also focus heavily on the global conventions and conferences industry," Crown Melbourne said in its statement. Crown expects to start construction of the 658-room hotel this month, with completion in May 2010. It will take advantage of visitors expected for a new convention center that will be completed in 2009.

The hotel will take the total number of rooms at the casino to more than 1,600, Crown said. Crown expects the hotel to accommodate 340,000 guests a year. The largest hotel in Australia is the 630-room Four Points hotel in Sydney owned by Starwood Hotels & Resorts Worldwide Inc. Crown also plans to spend A$205 million building retail shops, upgrading an existing hotel and refurnishing the casino. Packer is planning to spilt Publishing & Broadcasting into separate gaming and media companies.

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