A Belief in the Local Market

David Tsai, with 12 years of experience in Las Vegas and expertise in the integrated resort model, is leading Crown Resorts through its next phase of renewal in Melbourne. He describes the approximately $200 million transformation as "a belief in the local market."

He explained that the model integrates hotels, dining, entertainment, and retail, anchored by a central casino that enables large-scale investment. However, Crown Melbourne had not introduced new offerings for over a decade. "Rockpool is twenty years old, Nobu is nineteen years old." As a result, "The community told us that they still loved us and have waited patiently for the return of that spark that defined our early years," stated Mr Tsai.

The solution is to reinvest and introduce new concepts, aiming to restore Crown's former appeal. Crown is bringing Victor Churchill to its first full-scale Melbourne location and introducing Mott 32, a Hong Kong brand with broad market appeal similar to Nobu.

Echoing HSBC economist Paul Bloxham, Tsai acknowledged the challenges of rising costs and increased regulatory obligations. He noted that Crown's use of AI technology focuses on consumer protection rather than commercial gain. "We use AI to help minimise gaming harm, to predict potential risks in some of our customers' behaviour."

Constructed over thirty years ago, the complex has not fully engaged with the surrounding foot traffic. "Millions of people walk by the river. Less so come into our building." Priorities include redeveloping the riverwalk, adding alfresco dining, and expanding the theatre from approximately 800 to 1,250 seats. The theatre will prioritize quality programming, following a Las Vegas approach. "In our world, you can operate a world-class theatre where the priority is quality programming over box office," he said.

When asked why Melbourne leads in Crown Resort's capital investment program, Tsai explained, "Crown is investing across all three cities, but our thinking is that Melbourne is where the latent opportunity lies." The timeline is near: the theatre opens in November, Bellevue bar in early 2027, and Victor Churchill and Mott 32 around May.

For a room of investors weighing Melbourne, it was its own kind of endorsement.