The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
5
print
Print
ResidentialRenee McKeownTue 01 Sep 20

Event Positive About Property Despite Horror Year

697d7e49-f158-460f-9623-9807206d410a

Event Hospitality will progress $255 million plans for a ultra-slim Sydney CBD tower following a harrowing financial year including multiple natural disasters and the coronavirus pandemic.

The ASX-listed hospitality giant lodged the development application in July 2019 which was approved with conditions in May 2020 by the Central Sydney Planning Committee.

The 43 storey hotel-residential tower plans for George Street make up a fraction of the hospitality giant’s $2 billion property portfolio across Australia, New Zealand and Germany.

Company profit for the financial year was down 78.5 per cent to $34 million after “mandated restrictions almost entirely wiped out revenue” between March and June, and stocks dropped following the results announcement.

Event chief executive Jane Hastings said until February the group had the second-highest earnings result in its history despite the bushfires.

“The year was impacted by the most unprecedented external factors experienced in the group’s 110-year history, including bushfires, floods and Covid-19 government-mandated restrictions,” Hastings said.

“The final four months of the year was defined by the impact of Covid-19 government-mandated restrictions which immediately impacted revenue, down $262 million for the four-month period.”

▲ Event owns an office building, cinema complex, Dudley House and surrounding buildings on the proposed tower site and along George Street in Sydney CBD.


The company embarked on $140 million in cost reductions including government subsidies and rent relief, and there was no final dividend given in June.

Looking forward, Event is waiting for the government to drop restrictions impacting cinemas as well as hotel trading, which has operated with lower average room rates just inside the profitable range at 66.1 per cent occupancy.

Meanwhile, increased insurance premiums worth $2 million for the office sector and ongoing leasing liabilities will negatively affect this outlook.

However, Thredbo ski resort, on which Event has a 956.9-hectare leasehold (until 2057), is expected to boost the start of the next financial year’s results.

Despite bushfires and the pandemic affecting summer and winter seasons in New South Wales, the asset recorded its third-highest result in history at $20.9 million, down 16.3 per cent on the year before.

In contrast, Victoria’s ongoing battle with Covid-19 infections and increased restrictions led to NYSE-listed Vail Resorts’ closure of its Mt Hotham and Falls Creek operations in July.

HotelResidentialAustraliado not useFinancePlanningPlanningSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/event-sits-on-255m-george-st-tower-plans