Crown Melbourne has commenced a AU$200 million redevelopment of its Southbank precinct, marking the largest capital injection into the property in almost three decades. The works target dining, entertainment and sustainability upgrades across the 500,000-square-metre integrated resort, with staged openings scheduled from mid-2026 through 2027.

The redevelopment will introduce more than 15 new restaurants, bars and casual eateries. Management also plans a substantial refresh of the riverside Riverwalk, adding outdoor terrace dining and enhanced public open space. The initiative comes as Crown’s owner, Blackstone, shifts attention toward non-gaming revenue streams following softer performance in VIP segments and ongoing regulatory pressures.

Dining And Entertainment Reset Across The Precinct

Crown will relaunch its long-running theatre, The Palms, in November 2026 under the new name Crown Live Theater. The venue’s seating capacity will expand by 50 percent to 1,250 patrons. The redesign aims to position the theatre as a stronger draw for touring performers and residencies.

Crown Melbourne chief executive Ed Domingo referenced the venue’s past appeal, stating for AFR, “The best entertainment was under this roof, and you would come to Crown and not know exactly what to expect, but you would always have a great time.” He added, “This is really about repositioning Crown to be that again in the future for this next generation of customers and guests.

“Crown is very much open for business, as Victoria is open for business.“

Domingo also emphasized that visitor volume has remained steady at around 26 million annually, describing the redevelopment as a refresh rather than a response to capacity constraints. He noted, “Once upon a time, names like Nobu and Rockpool made their name in Australia, in this place,” and continued, “We haven’t made that type of investment and brought that kind of excitement, unfortunately, in a few years, and this is our chance to do that.

“Melburnians have changed a lot in 30 years, and we’ve evolved our offerings to appeal to this generation of customers and of tourists.”

New food and beverage tenants include a bar and grill by premium butcher Victor Churchill, with construction slated to begin in the second half of 2026 and opening targeted for mid-2027. A riverside gastropub will open directly onto the Yarra River waterfront, offering terrace dining and a sports-focused atmosphere that transitions into nightlife in the evening.

Crown Towers’ lobby bar will undergo refurbishment by early next year. Meanwhile, Crown Metropol’s 28th floor will reopen in May as a private events space featuring panoramic city views for weddings, corporate functions and private gatherings.

Financial Pressures And Strategic Shift

Crown’s redevelopment follows a period of financial recalibration. For the financial year ended June 30, 2025, Crown Melbourne reported a 1.3 percent revenue decline to AU$1.4 billion. Crown CEO David Tsai described the environment as “a complex regulatory landscape and economic headwinds”.

Despite softer Melbourne revenue, Crown posted its first full-year profit under Blackstone ownership, recording AU$142 million after asset divestments and cost reductions. The group previously cut AU$220 million in expenses and sold its London operations, alongside a 20 percent stake in Nobu.

The company has also restructured operational functions, moving significant accounting, technology and finance roles to a global capability centre in Asia.

Crown Melbourne currently operates approximately 1,600 hotel rooms across Crown Towers, Crown Metropol and Crown Promenade. Its casino floor includes 540 gaming tables and more than 2,600 electronic gaming machines.

Alongside hospitality upgrades, Crown will implement rooftop solar panels, battery storage and energy-saving technologies across the site. Management projects a 23 percent reduction in carbon emissions by 2027, equivalent to removing roughly 4,700 vehicles from the road annually.

The redevelopment is expected to create about 2,000 construction jobs and support Victoria’s visitor economy. In a statement accompanying the project announcement, Domingo said, “This significant investment in new dining, entertainment and the iconic Riverwalk will cement Crown’s place as the ultimate destination for food, fun entertainment and late-night energy,” adding, “Melburnians and our visitors have changed over the past 30 years – and this reimagining of our precinct ensures we continue to elevate our offering and deliver experiences fit for the next generation.”

Construction and detailed design work is currently underway across the precinct, with progressive venue openings planned through 2027 as Crown reshapes its flagship Melbourne property.