Australia's Crown Resorts gets approval for new Sydney hotel

Sydney

Australia's Crown Resorts has received approvals from the NSW Planning Assessment Commission for its Crown Sydney Hotel Resort at Barangaroo South. 

The plans for a Vegas-style complex along the Sydney harborfront were approved subject to a “number of substantial modifications and conditions which are currently being reviewed by Crown.” When the approvals were announced, Crown's share prices reported an increase on the Australian Stock Exchange.

Conflicts between Crown’s management team and the Commission have caused delays to the Sydney project, which affected the company's shares. Crown has been "heavily indebted" due to its building projects in Sydney and overseas. Declining revenues at the company's Macau-based Melco Crown Entertainment joint venture also affected share prices. 

Crown has faced criticism from institutional fund managers for strategic decisions that included taking a 20-percent stake in the Nobu restaurant chain for $100 million. Largely in response to the institutional selling, Crown announced some radical changes to its operating structure earlier this month in a plan to secure the funding to complete its ongoing development projects. As part of the makeover, Crown will be split between its Australian and international gaming assets.