Australian hospitality group Iris Capital is doubling down on its investment in Lasseters Hotel Casino with plans to spend more than $100 million on the newly acquired asset to create a world-class tourism destination for Australia’s red heart.

The Sydney-based company, headed by Sam Arnaout, settled the $105 million acquisition of the iconic Alice Springs casino resort and announced plans for a major transformation for the property to capitalise on a travel-hungry tourist market as interstate and international borders reopen.

Iris Capital acquired Lasseters Hotel Casino from its long-time owner, the Singapore-listed group Lasseters International Holdings, after securing regulatory approval from the Northern Territory Government to operate the casino following an exhaustive seven-month process. Approval was given on Friday, October 8.

The company is one of Australia’s largest privately owned property and hospitality groups, which significantly expanded its footprint over the past year through the acquisition of 17 Ibis hotels from AccorInvest.

That deal added more than 2000 rooms to the Iris Capital portfolio with the Lasseters acquisition boosting that number further.

Lasseters Hotel Casino, which shot to fame in the 1994 Australian feature film Priscilla Queen of the Desert, is a 4.5-star hotel resort comprising 205 rooms and operated by the InterContinental Hotel Group.

The purchase includes the Alice Springs Convention Centre, with 320 electronic gaming machines, and a host of restaurants and bars.

Iris Capital is planning a major expansion of the resort assets, including construction of a new hotel, an upgraded convention centre and a residential offering that will reposition the property as an iconic Australian destination for a global market.

“We are well advanced in discussions with the Northern Territory Government in relation to recapitalising the asset,” said Mr Arnaout.

“Our master plan for Lasseters incorporates a new hotel offering within a fully integrated resort and includes a repositioned casino floor with significantly expanded food and beverage offerings.

“The investment is aimed at capturing pent-up demand for new domestic tourism destinations, as well as the international travel market, while also capitalising on the mining industry’s connection to the region.”

Mr Arnaout said Iris Capital’s plans align with the combined vision of the Northern Territory Government and Tourism NT for Alice Springs to be Australia’s Inland Capital by enhancing its appeal as a global tourism icon and by delivering on a pipeline of existing and upcoming major projects providing significant investment and job creation in Central Australia.

“We are taking a first-mover position with a significant investment that we believe will provide the catalyst for further investment in the region,” he said.

“We’re putting the pedal to the metal to make sure the hotel and casino are ready to go in line with the government’s tourism vision for the region. We believe our plans will be a major shot in the arm for local stakeholders and other investors.

“With international flights already servicing Alice Springs, the infrastructure is there for this region to attract further investment by tourism operators and bring the red centre closer to a travel-hungry world market.”

Iris Capital’s plans for Lasseters Hotel Casino are still subject to government approvals.

“I am incredibly proud that our company has been recognised as being a fit and proper organisation to operate this premium Northern Territory asset,” said Mr Arnaout. “We look forward to continuing to work with the government to realise the asset for the benefit of the state and the community.

Over more than 25 years, Iris Capital’s investment and development activities have seen the company create $3 billion in enterprise value. The group currently generates annual revenue of $500 million and employs more than 1200 people across Australia.

Iris Capital’s credentials in property development led to the company’s selection in 2016 from a competitive government tender process to undertake a significant urban renewal project in Newcastle, the $1 billion East End development located on the eastern edge of the city’s CBD.

The company recently announced an $800 million redevelopment of Niecon Plaza in Broadbeach on the Gold Coast which will transform the heart of the tourism capital’s booming beachside suburb.

Related reading: Lasseters Hotel Casino sold to Sam Arnaout Iris Capital for $105m