Crown warns Western Australia slowdown could hit Perth luxury hotel towers

In addition to this, sluggish markets have delayed the sale of a stake in its planned USD 2B Las Vegas casino.

While its Perth six-star hotel development will hit both its December opening deadline and $645 million budget, Crown's chief financial officer Ken Barton said the fall-off from the state's mining boom makes the timing of its high-end entry into the market less than ideal.

“

“

While the hotel is still likely to boast high occupancy rates due to the lack of high-end accommodation in Western Australia, the collapse in commodity prices has stunted the resources rich state with most mining companies slashing costs to remain globally competitive

”

"While it looks like a fantastic property, it may be opening at the wrong time in the market," Barton told an investor call on Friday after visiting the site in late March. It will be a fantastic asset. It will do very well in that market but probably would have done a lot better if the market was at a different time in the cycle."

Crown Towers will be the largest hotel in Perth and boost the gaming company's number of rooms and suites to nearly 1200 at the complex.

While the hotel is still likely to boast high occupancy rates due to the lack of high-end accommodation in Western Australia, the collapse in commodity prices has stunted the resources rich state with most mining companies slashing costs to remain globally competitive.

Crown, which is 53 per cent owned by billionaire James Packer, said it is also experiencing delays in the sell-down of its 74 per cent stake in the planned $2 billion Las Vegas casino Alon which it hopes to open in 2018.

The Melbourne-based company is hoping to divest part of its equity share to about 45 per cent but wants to first put in place a high yield corporate debt package in the US market to smooth the equity transaction.

Sluggish US debt markets have pushed up costs for new borrowers and those that need to refinance and created a poor market for Crown to consider a debt deal which could top $US1 billion ($1.32 billion).