K'gari resort set to be sold to US travel giant
K'gari's Kingfisher Bay Resort is being sold to US-owned Journey Beyond. (ABC News: Johanna Marie)
Australian tourism and travel company Kelsian Group owns K'gari's award-winning Kingfisher Bay Resort.
Its tourism operations are being sold to US-owned Journey Beyond.
Kelsian Group expects the sale to be completed by the end of the year.
Traditional owners of K'gari, formerly Fraser Island, say they are hoping to work with the American company buying the island's largest hotel.
Kingfisher Bay Resort, which has 269 rooms, villas and holiday houses, is one of about 15 tourism operations being sold by Kelsian Group to tourism company Journey Beyond.
Lake McKenzie (Boorangoora) is one of K'gari's most popular destinations. (ABC Wide Bay: Johanna Marie)
Private equity firm Crestview Partners, based in the United States, owns Journey Beyond and already operates several high-profile tourism sites, including the Ghan and Indian Pacific railways, along with the Ayers Rock Resort.
The $145.8 million cash sale pays for Kelsian's tourism portfolio, which also includes K'gari Beach Resort and the K'gari Explorer tour operation.
Kingfisher Bay Resort offers 4WD tours to explore the world heritage-listed island. (ABC Wide Bay: Johanna Marie)
Sydney Harbour's Captain Cook Cruises, along with Kelsian's ferry and coach services, also form part of the deal.
The Australian Competition and Consumer Commission (ACCC) approved the sale in a determination last week, finding the deal was unlikely to affect competition in any market.
Kelsian Group announced on Thursday the Foreign Investment Review Board had approved the sale, and the company was working towards signing over contracts and authorisations to Journey Beyond.
The Butchulla people are K'gari's traditional owners, receiving native title rights over the island in 2014.
Butchulla Native Title Aboriginal Corporation chair Shawn Wondunna-Foley said the group welcomed any new owners or investors to the island, provided they worked constructively with traditional owners.
Fraser Island was officially renamed K'gari following a Butchulla ceremony in 2023. (ABC Wide Bay: Pat Heagney)
"Our focus is not on where investors come from, but on how they conduct themselves on Country," he said.
"We look forward to engaging with the new owners and exploring opportunities that can deliver lasting social, cultural, environmental and economic benefits for both the Butchulla people and the wider community."
Professor Daniel Gschwind from the Griffith University Institute for Tourism said international visitors expected to see genuine engagement with First Nations people in their tourism destinations.
"I would certainly encourage the new owners to build very strongly on what is ultimately a competitive advantage to be located in such an iconic, not just natural location, but also important First Nations destination," he said.
Daniel Gschwind is a Professor of Practice at the Griffith Institute for Tourism. (ABC News: Chris Gillette)
Kelsian Group and Journey Beyond did not respond to requests for comment.
When the sale agreement was first announced, Journey Beyond CEO Chris Tallent said the additional operations would work alongside its existing brands.
"They create new opportunities for guests to seamlessly extend their journeys across Australia β whether that's transitioning from rail to reef, river to resort, or city to sea," he said in February.
Journey Beyond acquired The Ayers Rock Resort in February. (Instagram: Explore Uluru)
Professor Gschwind said the resort was closely aligned with Journey Beyond's strategy of offering "experiential tourism".
"People don't want to just enjoy infrastructure and hotel rooms," he said.
"They want to really walk away from a tourism experience with β¦ something that they can emotionally connect with, something they can talk about, something they can put on Instagram, something that they can brag about."
Kelsian Group chief executive Graeme Leigh told an August earnings call he expected the deal to be completed by the end of the year.
