Whoever named it Magnetic Island knew what was up. The pull of the equatorial paradise attracts over 290,000 people to the island every year.
Short term rental property management company Alloggio (ASX: ALO) has made inroads on the island, today announcing the acquisition of Magnetic Island’s top holiday accommodation provider, Best of Magnetic.
For a cost of $2.95 million, Best of Magnetic will now be a fully Alloggio owned entity, adding another 160 properties to the Company’s current portfolio which exceeds 1800 holiday properties. The acquisition is well in line with Alloggio’s expansion strategy along Australia’s eastern seaboard.
After announcing acquisitions in the popular tourist destination of Noosa, Queensland, the Company has set their sights further north as Queensland recovers from its COVID tourism lull.
The latest acquisition marks the Company’s official expansion into North Queensland, a new market for them.
Best of Magnetic amassed a gross booking value of $6.5 million with $1.5 million of annual gross revenue, despite COVID border closures and travel restrictions.
The acquisition is expected to be immediately earnings accretive to shareholders and present new growth opportunities in the Northern Queensland verticals.
CEO and Founder of Alloggio, Will Creedon commented on the new business, saying: “With Magnetic Island, the clue is in the name. We are excited to offer Alloggio’s range of premium services to holidaymakers year-round, particularly travellers following the sun over the winter months to such a quintessential North Queensland holiday destination. The acquisition of Best of Magnetic facilitates our entry into the attractive North Queensland market and continues our strong momentum following our recently announced acquisitions in Noosa and on the Great Ocean Road. The acquisition is consistent with our growth strategy of growing holiday property management rights and we are excited about the significant pipeline of opportunities ahead as Australian domestic tourism continues its strong rebound.”
The well timed announcement comes after a recent survey from the World Travel and Tourism Council who predict that the travel industry will contribute $8.6 trillion to the global economy this year, just 6.4% below pre-pandemic levels.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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