1834 Hotels acquires KI lodge, targets more growth in regions

Management company 1834 Hotels is doubling down on a ‘renaissance’ in domestic tourism following its first major property acquisition.

1834 Hotels is doubling down on a “renaissance” in domestic tourism following a busy end to 2021 for the hotel management company.

In December it completed its first major property acquisition with the $4.65 million purchase of the Mercure Kangaroo Island Lodge, and in the same month took over as the new operator of the Anchorage Hotel in Victor Harbor.

The company, which has roots dating back to the 1980s, provides management services to close to 20 hotels, motels, hospitality and other venues, primarily in regional areas of South Australia and also in NSW, Victoria and Western Australia.

Chief executive Andrew Bullock said the company had overcome a challenging period during the height of Covid-19 - when many hotel operators opted to internalise their management function - but it was now looking at further acquisitions and the potential to grow its management portfolio.

1834 Hotels recently acquired the Mercure Kangaroo Island Lodge. Picture: Supplied by 1834 Hotels

“One of the strategies coming out of Covid was of course to grow the management platform of the business, but the other side of that was to look at potential acquisitions,” he said.

“Over the next three to five years, Australia-wide, we’re seeing this renaissance for domestic tourism and I think the opportunities for growth in some of these regional markets is probably as good as it’s ever been.

“We think there’s a huge opportunity in the next three to five years to trade some excellent results in regional Australia.”

1834 Hotels will retain the Mercure brand at the 38-room hotel near American River, where several upgrades are also planned, including the potential addition of further accommodation.

“It’s quite a large site, almost 3ha, and on that site there are a number of pockets of land that we think could certainly have additional rooms,” Mr Bullock said.

“We’re looking at all sorts of stuff from eco-cabins to more traditional-style accommodation - we’re developing that plan at the moment.

1834 Hotels chief executive Andrew Bullock at the new KT Apartments in Kent Town. Picture: Michael Marschall

“What we do know is there will be a continued refurbishment of the current rooms ... and probably a bit of a repositioning of the internals of the lodge section as well.

“Kangaroo Island has such a wonderful base of domestic tourism, but also when the international recovers we’re really confident that KI is going to be a major player in the regional tourism space.”

1834 Hotels took over management of a number of other venues in 2021, including Quality Adelaide Central Apartments in the CBD, the new Bridgeport Hotel in Murray Bridge and KT Apartments in Kent Town.

The new Botaniq Hotel, currently being built at the Hackney Hotel site, will also be managed by the firm once it opens later this year or early in the new year.

Meanwhile at the Anchorage Hotel, owner Greg Phillips is planning an $80 million hotel development adjacent to the existing accommodation on Flinders Parade, with designs currently being assessed by the State Commission Assessment Panel.

The six-storey Wyndham complex would feature 100 rooms, 27 apartments and two restaurants.

“He (Mr Phillips) has some amazing plans for that site and how that will all integrate - we’re really excited to be a part of that,” Mr Bullock said.