In a surprising move that has sent shockwaves through the hospitality and gaming industry, Crown Resorts has announced the sale of its stake in the luxury restaurant chain Nobu for a staggering $180 million profit. The news comes as the Australian casino giant looks to refocus its efforts on its core business of operating world-class casinos.
The deal, which was completed in partnership with private equity firm L Catterton and Nobu’s existing owners, sees Crown Resorts selling its 20% stake in the high-end restaurant chain. Crown originally acquired its stake in Nobu back in 2019 as part of an ambitious diversification strategy aimed at expanding its presence in the global hospitality industry.
However, with the ongoing challenges posed by the COVID-19 pandemic and the resulting economic downturn, Crown Resorts has decided to realign its focus on its core gaming business. The sale of its stake in Nobu is seen as a strategic move to streamline its operations and bolster its financial position in the face of a challenging market environment.
Commenting on the sale, Crown Resorts CEO Steve McCann stated, “While our partnership with Nobu has been successful and lucrative, we believe that it is in the best interest of our shareholders to refocus on our core business of operating world-class casinos. This decision will allow us to better allocate our resources and capitalize on the opportunities in the gaming industry.”
The sale of its stake in Nobu is expected to provide Crown Resorts with a significant cash infusion, which the company plans to use to fund future growth initiatives and strategic investments in its casino business. The move is also seen as a signal of confidence in the long-term prospects of the gaming industry, despite the challenges posed by the ongoing pandemic.
Industry analysts have lauded Crown Resorts for its bold decision to sell its stake in Nobu and refocus on its core gaming business. The move is seen as a strategic response to the changing dynamics of the hospitality industry and a proactive step towards ensuring the company’s future success.
As Crown Resorts looks to the future, all eyes will be on how the company leverages the windfall from the sale of its stake in Nobu to drive growth and innovation in its casino operations. With a renewed focus on its core business, Crown Resorts is poised to continue its legacy as a leading player in the global gaming industry.