Star breaks ground on new $400m Gold Coast tower

The Star Entertainment Group (ASX: SGR) has broken ground on its latest development, the Dorsett Hotel, a $400 million addition to the company's growing South East Queensland portfolio.

The new tower will boast 316 hotel rooms as well as 423 one and two-bedroom apartments, adding a total 739 keys to the company's accommodation on Broadbeach Island alongside the existing Star Grand and The Darling.

Dorsett Hospitality International operates 54 hotels around the world and The Star Chairman John O'Neill says the brand's first foray on Australian soil will attract significant interest from the Asian market.

"This is a very important project for us and for the Gold Coast," says O'Neill.

"Dorsett Hospitality International has a massive footprint across Asia. That will ensure The Star Gold Coast has a heightened level of awareness and consideration from Asian guests because of the strength of the Dorsett brand in China, Hong Kong, Malaysia, Japan and Singapore."

Together with Chow Tai Fook, a Hong Kong-based conglomerate, and developer Far East Consortium, The Star has currently completed or planned investments in South East Queensland worth more than $4.5 billion.

Queensland Premier Annastacia Palaszczuk says The Star has invested more than $375 million on the Gold Coast.

The Premier looks forward to returning to the Gold Coast to open the new building in around three and a half years' time.

"With the Dorsett's construction, this takes the investment on Broadbeach island to $850m, demonstrating the ongoing confidence in the strength of our state's $25 billion tourism industry," says Palaszczuk. Read more

Paris Faint - Business News Australia - 24 August 2018