Ardent Leisure (ASX:ALG) splurges $75 million on theme park resort

Company News

by Michael Luu

Entertainment park operator Ardent Leisure (ASX:ALG) is replicating a trend among the world’s most popular theme parks to provide on-site accommodation for visitors.

The $384 million leisure company told investors it intends to invest $75 million in a resort facility called Dreamworld Resort within the vicinity of its Gold Coast theme parks Dreamworld and WhiteWater World in Queensland

The accommodation complex will boast a four-star hotel and a five-star powered tourist park for caravans. The leisure accommodation business’ capacity will comprise of 240 hotel rooms, 40 bungalows, 100 powered sites, eateries, function centres, swimming pools and a recreational facility.

Ardent Leisure’s subsidiary Dreamworld explained the motivation behind the project, “The hotel and tourist park will complement Dreamworld as a premium entertainment destination and add a new level of convenience for guest who will have our theme park and water park on their accommodation’s doorstep,”

Like Disney World and Legoland’s accommodation packages, Dreamworld intends to integrate more hospitality services into its operations in a bid to generate greater revenue.

Under a non-binding agreement, the company has selected resort developer Evolution Group to execute the construction project.

The holiday accommodation venture is expected to generate more jobs for the local employment market and contribute to the tourism sector’s recovery from pandemic challenges.

Shares in Ardent Leisure (ASX:ALG) are trading 2.5 per cent lower at $0.78 
 

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