Bidding war erupts for Cairns Reef Hotel Casino
A high-stakes acquisition battle has emerged for one of Far North Queensland's premier tourism destinations, with entrepreneurs Chris Morris and Sam Arnaout both chasing the Reef Hotel Casino in Cairns.
The Reef Casino Trust confirmed to the ASX on Tuesday that it had received acquisition proposals from Morris Group and Iris Group, following initial reports in The Australian.
"Reef Corporate Services Ltd (RCSL) confirms that, as at the date of this announcement, the board of RCSL is in ongoing and incomplete negotiations with both Iris and Morris Group in relation to indicative, non-binding and highly conditional proposals to acquire 100 per cent of the units in RCT that it has received from each of them," the company stated.
The board acknowledged media speculation about the price point, confirming that "the proposals are in excess of $200 million for all the component parts of the transaction, including the casino and the hotel." However, they clarified that "whilst price and value allocation remain under negotiation, RCSL also confirms that the value allocated to the units in RCT under both Proposals is less than A$200m."
Morris, Computershare co-founder and tourism magnate, recently completed due diligence on the property, which includes the casino and the Pullman-branded 128-room hotel. Sources indicate he views the acquisition as strategically complementary to his existing Townsville casino operations.
Arnaout's Iris Group entered a four-week due diligence period in February and remains in contention. Arnaout, a significant residential developer and pub owner, previously acquired the Canberra casino for $63 million in 2022.
The Cairns casino property operates under the ASX-listed Reef Casino Trust, currently valued at approximately $146 million. While the asset remains profitable, recent financial statements indicate visitation has not fully recovered to pre-pandemic levels.
The 2024 financial report shows modest growth with overall visitation up 1.5 percent, primarily driven by domestic tourists as Chinese mainlander numbers remained subdued. Electronic gaming revenue increased 3.2 percent, though table gaming declined 8.3 percent due to fewer premium players. Hotel revenue rose four percent, supported by strong inter and intrastate bookings, while food and beverage sales increased 5.5 percent.
The casino is jointly operated by Casinos Austria International Ltd and Accor Casino Investments (Australia) Ltd, with Accor also managing the hotel.
Any transaction would require shareholder approval, and neither Morris nor Arnaout provided comments when contacted. Adrian Williams, Reef Casino Trust board member and Accor Pacific chief operating officer, also declined to comment.
The property was previously targeted for acquisition in 2013 by the Fung family, who later purchased the Canberra casino before selling it to Arnaout.
Jonathan Jackson, 31st April 2025
