The Beach Club Resort, Hamilton Island. Photo / Tourism and Events Queensland
The Beach Club Resort, Hamilton Island. Photo / Tourism and Events Queensland
The crown jewel of Queensland’s Whitsunday Islands may go up for sale for a reported A$1 billion, after current owners said they were reviewing the future of the treasured resort island.
This price tag is five times what current owners the Oatley family paid for the island two decades ago. Hamilton Island was bought by the winemakers for nearly A$200 ($217 million) in 2003.
The island property, wedged between the Whitsunday Islands National Park and the coral of the Barrier Reef was developed in the early 1980s and boasts resort accommodation, an 18-hole golf course and a regional airport - the Hamilton Great Barrier Reef Airport, which is also part of the sale.
The family, who made their fortunes in winemaking in New South Wales, have invested more than $450 million in tourism infrastructure since according to the Australian Financial Review.
Bob Oatley, is rumoured to have bought Hamilton Island on a whim, after competing in the annual Hamilton Island Race Week sailing regatta after learning the island was seeking a buyout.
“What triggered it all was Dad’s sailing in the Whitsundays and trying to build an iconic resort in Australia that was also a great sailing venue,” says Bob’s son and current island CEO, Sandy Oatley.
“He had sailed all around the world, and he saw the Whitsundays as a great paddock, as he called it, to go sailing in.”
Now assessment by investment bank UBS is underway at the prized tourism island, which is now reported to be worth around AU$1 billion. Whether it really was a holiday impulse purchase, or a more calculated investment, the initial assessment shows that Hamilton Island was extremely profitable.
A statement to news.com.au said the Oatleys had sought advice to “explore opportunities” with regards to the future of the island.
“At this stage this review is ongoing and no decisions have been made.”
The $1bn tropical Hamilton Island in the Whitsundays, contains a marina, resort accommodation and a regional airport as part of the lot.
The Australian reported that prospective investors have already been hosted on the island resort.
Neighbouring islands in the chain are prized trophy assets for some of Australia’s richest families. Ranging from around $20 to $42 million in recorded sale price for Dunk and Lizard islands, the other properties are not in the same league as the heavily developed resort island which the Oatleys hope could fetch twenty-five times that.
The nearby Great Keppel island has been on-and-off the market for the past decade for around $50 million. A high profile bid by Australia’s richest businesswoman, Gina Rinehart was abandoned last year, without any reason given.
“It’s a truly stunning part of the world but extensive island developments have not worked,” a News Corp source in the island property industry was quoted as saying.
Despite having many of the same ingredients as Hamilton, Keppel has far less appeal and development than its iconic Queenland neighbour.
“They also have a bad record with cyclones and all the other stuff. Let’s face it, there’s only ever going to be one Hamilton Island and no one has the fortitude to try and do another.”
