Coast Entertainment Q1 Revenue Up 12.5%, Proposes Hotel

Coast Entertainment (ASX:CEH) used its AGM addresses to give a first quarter FY27 trading update and to set out a preferred plan to develop a hotel and an entertainment, dining and retail precinct on its Dreamworld landholding.

For the quarter to September 2026, which is unaudited, total visitation rose 18.4% and revenue rose 12.5% on the prior corresponding period, and EBITDA excluding Specific Items was up 22.3%. Ticket sales were 16.2% below the prior period, which the company attributes mainly to the timing of its end of financial year sale. The proposed Dreamworld-branded four-star hotel of approximately 250 rooms has an indicative investment of around $200 million including land, with completion targeted around 2030 to 2031. The precinct has an indicative investment of approximately $60 million including land. Analysis with Barrenjoey indicates levered internal rates of return of above 20% across the hotel and precinct and an estimated value on completion of approximately $330 million. The company says its current strategy does not contemplate a new equity raising and that peak gearing could remain within its 30% to 35% target range. At June 2026 it had $35 million in cash, no debt and a fully undrawn $20 million facility.

The company says these are indicative assessments, not earnings forecasts or committed outcomes. No final financing package has been agreed, and development remains subject to feasibility, approvals, funding and final investment decisions.