Coast Entertainment maps $260M Dreamworld plan
Key points
- Coast Entertainment outlined a proposed $260 million transformation of its Dreamworld site into a hotel and entertainment precinct.
- The company targets a four-star 250-room hotel alongside a complementary leisure precinct.
- Coast Entertainment plans to fund the expansion using existing cash, operating cash flow, and debt without raising new equity.
Coast Entertainment (ASX:CEH) has proposed a $260 million expansion of Dreamworld to build a hotel, dining, and retail destination.
The Gold Coast operator has evaluated a 250-room hotel costing about $200 million and a 60 million leisure precinct on its 55-hectare Coomera landholding.
"Ultimately, our funding approach will be disciplined, with a clear focus on protecting our core business while delivering long-term value for shareholders," said Coast Entertainment Holdings Group CEO Greg Yong.
The preliminary assessment points to potential leveraged internal rates of return above 20% for the developments, though the company noted these figures are modelling outputs rather than committed financial outcomes.
Following the announcement, the Coast Entertainment share price was down at $0.46.
The proposed development builds on a recovery in FY26, when theme park visitation increased by 26.5% to over two million guests.
Coast Entertainment Holdings reported operating revenue grew 19% to $116.5 million in FY26, helping the business return to a $6.1 million net profit after tax.
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