NRMA buys high-profile Tasmanian resorts for $130 million
NSW motoring organisation the NRMA is defying the tourism downturn with the $130 million acquisition of several high-profile Tasmanian resorts, including Freycinet Lodge and Cradle Mountain Hotel.
Under the deal, the NRMA, which has an existing $800 million portfolio of tourism assets comprising a national network of holiday parks, will acquire the Tasmanian tourism assets as well as a 46% stake in the Cairns-based Coral Expeditions cruise line.
The Tasmanian deal also includes Strahan Village as well as Gordon River Cruises. All the Tasmanian assets will be bought from the Royal Automobile Club of Tasmania (RACT).
It is understood that a significant portion of the NRMA’s $130 million outlay will be devoted to the upgrade and renovation of Freycinet Lodge, Cradle Mountain Hotel and Strahan Village.
The NRMA has been on a buying spree of late, snapping up a 46% stake in Coral Expeditions, one of few cruise companies that have traded well through the pandemic, given its heavy focus on local itineraries.
The Tasmanian deal positions the NRMA as one of Australia’s largest transport and tourism operators. The motoring organisation also announced on Tuesday it would venture into the lucrative world of expeditions, creating a division called NRMA Expeditions.
Headed by NRMA chief investment officer Rachel Wiseman, NRMA Expeditions will focus on growing its investment in the tourism sector through acquisitions and partnerships.
“International travel will likely be a way off for Australians and we believe domestic tourism will play a critical role in driving Australia’s post-COVID economic recovery. Tasmania, with its unique natural assets and sophisticated food and cultural offerings, will be central to this,” Ms Wiseman said.
“NRMA Expeditions will focus on delivering five-star experiences in natural environments and this is exactly what the RACT acquisition will deliver.”
RACT group chief executive Mark Mugnaioni said: “RACT is excited to announce the documentation of an arrangement that includes a significant investment commitment for the properties, highlighting the buoyancy and confidence that exists within the Tasmanian tourism market, particularly in regional areas of the state.
“Our commitment to quality experiences that match the unique Tasmanian landscape in which we operate is one of the key reasons for the NRMA’s interest in these properties.”
The Tasmanian assets include Freycinet Lodge at Coles Bay on the east coast of Tasmania which offers cabins from $269 to $749 a night. The Cradle Mountain Hotel nestled within an alpine forest is priced from $169 to $229. The Strahan Village on the West Coast are priced from $129 to $189 a night.
This article first appeared on www.theaustralian.com.au/business/property.
