SkyCity puts Grand Hotel up for sale after high fuel prices force earnings downgrade

Friday, 1 May 2026

Higher fuel costs reducing people’s ability to spend at SkyCity’s casino and entertainment complexes has forced the NZX sharemarket-listed company to issue an earnings downgrade, and announce the intended sale of its Grand Hotel in Auckland.

The company expected the slump in business to lead to a multi-million dollar drop in pre-tax earnings (ebitda).

“SkyCity now also expects reported ebitda for full year 2026 to be in a range of $155 million to $165m. This compares to previous guidance of reported ebitda for full year 2026 of between $170.6m and $190.6m,” SkyCity said in an announcement to shareholders on Friday morning.

The impact of squeezed household discretionary spending had been felt on both sides of the Tasman, and had been felt most keenly at its Auckland and Adelaide casinos.

However, SkyCity told shareholders: “No significant impacts have yet been observed in Hamilton, Queenstown, or on existing New Zealand International Convention Centre bookings.”

It expected economic conditions to create uncertainty for the the rest of its current trading year, which ends on June 30.

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“This guidance is based on trading conditions experienced since the fuel price increases remaining broadly consistent for the remainder of full year 2026,” it said.

But, it said: “Significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions, and further deterioration in these conditions could affect this guidance.”

The NZX announcement included news that SkyCity was now seeking expressions of interest from potential investors in acquiring The Grand Hotel on Federal St in Auckland.

The hotel has over 300 rooms, and a 25-metre swimming pool, spa, and fitness centre.

The casino company had been selling assets to repay debt in what it calls its “ongoing asset monetisation programme”.

There is a heads of agreement to sell its head office at 99 Albert St in Auckland.

It has not signalled it was willing to sell the newly-completed International Convention Centre.

However, in its announcement to shareholders on Friday, it said: “SkyCity will continue to consider strategic alignment, value realisation, transaction sequencing and relevant external dependencies.”

SkyCity Entertainment shares opened this morning at 63 cents, having lost almost 40% in value over the year.