SkyCity takes punt on upgrades for World Cup success

The Horizon Suites have luxurious private gaming areas. Photo / Supplied

SkyCity Entertainment Group last night unveiled a new stage of its $30 million rooftop redevelopment above one of its two central-Auckland hotels, expecting a bumper Rugby World Cup season.

The company says the cup will provide a one-off boost of $20 million in earnings from the event for SkyCity alone and $8 million extra revenue for its hotels.

One of the new venues, Eight, above the SkyCity Hotel on Federal St is now open to qualified gamers, or those with a history of spending, as the latest of 10 new bars, restaurants or areas the business opens in and around Federal St this month in time for the tournament.

Eight has high ceilings, chandeliers, leather, gold and a grand staircase. It has 16 high-limit table games and 16 electronic gaming machines and heated outdoor smoking areas.

After analysts criticised the group for not spending enough on Auckland but splashing out in other areas, SkyCity embarked on a big upgrade with a longer-term plan for a $350 million national convention centre opposite, a move anti-gamblers strongly oppose.

The Problem Gambling Foundation is concerned about the social impact of increasing the number of pokie machines and gambling tables in Auckland. Graeme Ramsey, the foundation chief executive, said SkyCity already had 1647 pokie machines which were dangerous and caused harm to communities and he opposes SkyCity's expansion.

Nigel Morrison, SkyCity chief executive, hosted the function last night, inviting 300 guests into big new open gaming areas on level eight of the SkyCity Hotel.

The project was timed to coincide with the matches but is also aimed at pulling more Asian high rollers into Auckland, taking on Sydney and Melbourne.

A few weeks ago, Morrison unveiled the Horizon Suites with discreet luxurious gaming areas alongside rooms with lounge areas so gamblers can visit the venue privately.

Moller Architects worked on the facilities on levels eight and nine above SkyCity Hotel.

The construction work, which included demolition of the hotel's pool, was timed to be completed in two stages: the salons and new guest rooms ready mid-winter and Eight, rooftop bar and deck areas with additional VIP salons for groups ready by the end of August.

The outdoor heated pool was a non-yielding asset and the area was better put to use as high-yielding gaming space, SkyCity says.

This month, Morrison presented financial results for the year to June 30 which showed big jumps in gaming machine revenue and in non-gambling revenue. SkyCity is the Government's preferred developer for the convention centre on Hobson St opposite its existing buildings.

One big month

SkyCity's new restaurants/bars/gaming Auckland facilities:

Depot: August 9-12
Red Hummingbird: August 13
Fortuna: August 17
Diamond Room: August 19
Chivas at the Deck: August 24
Mumm Champagne Bar at SKY Lounge: August 24
Eight: today
Family of 12 Bar: today
The Grill: Thursday
Nation's Clubrooms: September 9