A $568m six-star hotel is to be built at Burswood as part of a Crown hotel expansion of the casino precinct, Premier Colin Barnett has announced.
The 500-room hotel will be built partly on land the James Packer-owned Crown now has and on 5.8ha of land Crown land it will buy for $60m under the terms of its 1985 Agreement Act.
The new hotel is expected to be built by 2016.
Gaming taxes are expected to increase by $52m a year and $5m in payroll tax would go to the State Government, Mr Barnett said.
The Government will back plans for an additional 500 gaming machines and 130 gaming tables over the next five years.
In a statement, Crown said the new hotel would be called Crown Towers.
The development of the new hotel would take Crown Limited’s investment in the Burswood complex, to more than $1.3 billion dollars since acquisition in 2004.
In addition to the total cost of acquiring Burswood of almost $900 million, Crown’s total investment in Perth will now exceed $2.2 billion.
Crown Towers Perth would be the largest hotel in Perth and would take hotel room capacity at Burswood to nearly 1,200 rooms.
Construction is expected to commence in early 2013 and the hotel, which will take approximately three years to complete, will comprise 500 rooms and include restaurants, bars, resort and convention facilities.
The hotel will be built on land owned by Burswood as well as land to be acquired from the State, adjacent to the existing complex and currently part of the golf course.
The new hotel and facilities are expected to provide employment for more than 500 people and create an additional 700 construction and construction related jobs over the three-yeasr construction.
Mr Barnett said the new six-star Crown Towers Perth hotel was expected to draw an additional 79,000 extra visitors to WA each year, and generate an extra $60m in tourism expenditure in the State annually.
“This will go a long way to alleviating the chronic room shortage that has been negatively affecting Perth’s tourism industry and the overall WA economy,” the Premier said.