Shares of Crown Resorts Limited [ASX:CWN] have been displaying surges of great performance for most of the year.
Today’s sudden increase shows the resort company’s efforts to push for new developments that benefits its share price.
Over the past couple of months, they have maintained the current share price of around $13, while avoiding complications that could cause any sudden drops to its share value.
While every company are afraid of its shares tipping over the edge, Crown know how to effectively counter this from happening.
What’s great for investors is that Crown’s shares are still trading at a cheap price, even with its shares increasing by 2.44% today.
It displays high potential in further investment.
Strong demand for luxury hotel accommodation
In Melbourne and Perth, there has been a consistent rate of hotel demand across Crown complexes.
Hotel occupancy was 98% with an average room rate scaled at $382.
Melbourne in particular displayed a healthy revenue of $1,127.7 million, which was up by 8.2% to the previous year.
On its financial report Crown stated,
‘Crown Promenade Melbourne hotel occupancy was 96.0% with an average room rate of $234. These high occupancy rates reflect the very strong demand for luxury hotel accommodation in Melbourne.’
Perth has also pulled through some positive results, hotel occupancy is currently at 86.8% with an average room rate of $238.
Perth margins weren’t as high as Melbourne, this is due to operations involving the expansion of its Perth based properties and completion of Crown Towers Perth.
Crown has also seen some success on its digital front and sales.
They have previously announced that they had entered an agreement to sell 62% of its interest in CrownBet, for a total of $150 million.
The purchase is associated with other shareholders in CrownBet.
Crown has come out saying that its interest in CrownBet is an asset up for sale.
Crowns operating cash flow remains at a healthy state, they are working towards paying off its debts while further developing its projects.
For Money Morning
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