Cruise and marine transport operator SeaLink Travel Group has turned to accommodation to stimulate much-needed growth, buying the Kingfisher Bay Resort and associated assets on Fraser Island for $43 million.
Kingfisher Bay Resort is a virtual monopoly business, controlling 90% of accommodation on Fraser Island, a world-heritage listed destination in southeast Queensland.
There appears ample scope to improve occupancy, which was 60% in 2017.
Also included in the package is Eurong Beach Resort (2017 occupancy of 47%), Fraser Explorer Tours and Fraser Island Ferries.
The acquisition (from Japanese company Cosmos Initia) is debt funded and due to settle in April.
Sealink’s net profit for the six months to December 31, 2018, was $11.3 million – 13.7% below the previous corresponding period.
It has forecast trading the second half of FY18 to be flat – “in line with last year”.
The company’s major brands are SeaLink and Captain Cook Cruises.