Gilligan’s on the block for $120m as investors head north
Gilligan’s Hotel & Resort, Cairns, is for sale.
Far North Queensland hospitality icon Gilligan’s has hit the market, and it is expected that the well-known Cairns venue will attract interest around the $120m mark.
The site and hotel business, owned by Adam Tilley, Simon Larcombe and Anthony Brooks, is one of the most recognisable venues along the Cairns waterfront.
The pair is looking to sell both the property and business after a long stint running the venue and then buying the freehold of Gilligan’s from Christian Ainsworth – son of pokies billionaire Len Ainsworth – in 2021.
The freehold changed hands for $56m at that time, and now the combined freehold going concern is being tipped to bring out big local and international buyers.
The property is a large 10,500sq m double-fronted CBD site, and the multi-level venue is a mainstay of the Cairns tourism and hospitality market
“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,” said Gilligan’s director Mr Larcombe.
“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,” said JLL hotels director Tom Gleeson.
“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,” Mr Gleeson said.
The property has 705 beds, 40 gaming machines and the popular outdoor markets, which generate annual revenues of more than $35m.
“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.
Interest in Queensland assets is rising. The Waratah Hotel Group last week sold off the Royal on 99 in the regional Queensland township of Roma to the Melbourne-based Black Rhino Group, via HTL Property.
The hotel, which opened in 2016 after the former Royal Hotel was destroyed by fire, added to Black Rhino’s purchases of The Overlander Hotel in Mount Isa, in May, and the Kalka Palms Hotel in Rockhampton, in June. It saw off competition for the asset from rival interstate and Queensland-based investors.
