US private equity giant Blackstone has agreed to acquire Hamilton Island for approximately $1.2 billion, marking the end of more than two decades of ownership by the Oatley family. The acquisition, pending regulatory approval, represents a strategic expansion of Blackstone’s footprint in Australia’s hospitality sector. Chris Heady, Blackstone’s Chairman of Asia Pacific, emphasized the firm’s commitment to the island’s long-term success and its local community.

Key gateway

Hamilton Island, spanning over 2,800 acres, features five hotels, more than 20 dining venues, an 18-hole golf course, a marina, and its own commercial airport. As a key gateway to the Great Barrier Reef and the Whitsundays, the resort has become a cornerstone of the region’s tourism and hospitality industry.

The Oatley family, who bought the island in 2003 for around $200 million, invested over $350 million into upgrades, including the luxury resort qualia. Expressing satisfaction with the partnership, the family highlighted Blackstone’s role in continuing their legacy while supporting local employees and businesses. Hamilton Island plays a significant role in the Whitsundays’ economy, creating employment opportunities and sustaining the local tourism sector.

These selections are based on solid fundamentals, including strong local economies, infrastructure investments, and low vacancy rates, according to Hotspotting General Manager Tim Graham.

The report emphasises the potential for cashflow-positive outcomes without sacrificing long-term capital growth.

“These are not speculative picks,” Hotspotting General Manager Tim Graham said.

“They’re backed by real fundamentals, including strong local economies, infrastructure investment, and low vacancy rates.

“We’re identifying locations where investors can achieve cashflow-positive outcomes without sacrificing long-term capital growth.”

Strong Markets

Examples include Park Avenue in Rockhampton, which experienced a 29.1% annual price increase, and Lismore in New South Wales, surging 26.8% despite flood recovery efforts. Washington Brown Director Tyron Hyde notes that these markets are resilient and attract strategic investors focused on long-term growth rather than short-term returns.

“These markets are resilient, affordable, and on the move,” Mr Hyde said.

“They’re attracting investors who are thinking strategically and not just chasing short-term returns, which is always a bad idea.”

Regions like Victoria’s Red Cliffs and Mooroopna, as well as Northern Territory’s Moulden and Rosebery and Tasmania’s Ravenswood, signify a shift towards regional centres with increasing demand and infrastructure development.