FNQ icon Gilligan’s expected to fetch around $120M
Hospitality icon Gilligan’s is expected to fetch around $120 million after it hit the market this week.
The Far North Queensland venue is one of the most popular in Cairns and has been put up for sale by owners Adam Tilley, Simon Larcombe and Anthony Brook who own the property and the business.
The owners acquired the freehold of Gilligan’s for $56 million from Christian Ainsworth – son of pokies billionaire Len Ainsworth – in 2021. It is a multi-level, 10,500sq m double-fronted CBD site.
The latest sale of the freehold is expected to attract big local and international buyers.
“We’ve seen Cairns region grow and really mature as an international tourism destination over the course of our tenure, and whilst we’ve taken the view that now is an appropriate time for us to let another party enjoy the benefits of the next stage of the life of this extraordinary investment, we are convinced that both Gilligan’s and Far North Queensland’s best days lay ahead,” Gilligan’s director Simon Larcombe said.
“Gilligan’s is an icon known around the world, but in addition to its noteworthy brand equity value, is the critical investment criteria it enjoys; that being its immense revenue scale, income risk hedge, and the tangible profit maximisation opportunities which so clearly exist,” JLL hotels director Tom Gleeson said.
“This asset could be blended into an existing portfolio or acquired as a seed or foundation asset for new entrants into the region, and as such we expect interest levels to be heightened,” Gleeson added.
The property features 705 beds, 40 gaming machines and outdoor markets, with annual revenues of more than $35 million.
“Gilligan’s is the prototype for precinct activation, with several highly profitable business units housed within the one location and all speaking to a target market which transcends national and international borders,” said HTL Property managing director Andrew Jolliffe.
Queensland's hospitality sector is experiencing increased investor interest.
The Waratah Hotel Group recently sold the Royal on 99 in Roma, Queensland, to the Melbourne-based Black Rhino Group. Facilitated by HTL Property, this transaction marks the third hotel acquisition by Black Rhino in Queensland this year.
The Royal on 99, which was rebuilt following a fire in 2016, joins The Overlander Hotel in Mount Isa and the Kalka Palms Hotel in Rockhampton in Black Rhino's Queensland portfolio. The hotel's sale attracted strong competition from both interstate and local investors.
Jonathan Jackson, 11th September 2024
