Melbourne River Cruises on the market for the first time since the 1980s as tourism rebounds

The owners of Melbourne River Cruises who founded the business in the 1980s, are selling it just as tourism grows in the city that was heavily affected by Covid-19.

Melbourne River Cruises takes visitors on a guided tour along the Yarra River through the heart of the city.

One of Melbourne’s most recognised tourism businesses has been put up for sale after being held by the same family for more than 40 years.

The iconic Melbourne River Cruises, which operates seven commercial passenger vessels, is on the market at a time when visitors are flocking back to the city after the tourism industry was heavily impacted by strict Covid-19 lockdowns.

It is expected to fetch as much as $15m, and offers the new owner the exclusive use of five berth licences at Federation Wharf and Southgate.

JLL Hotels & Hospitality Lachlan Persley said that Melbourne River Cruises was the largest boating operator on the Yarra and was likely to be highly sought after by tourism operators or perhaps Crown Melbourne, given the ­location.

“They’ve almost got a monopoly because the other competition has only one or two boats, whereas these guys have seven, one of which, a two story restaurant, is quite popular,” he said.

“We’re hoping that a big tourism group that operates boats across the country might come in.

“Potentially Crown could be a good fit, given that the major berth is opposite the casino and a lot of people who frequent the Crown use the boats as well.”

Mr Persley said that price point was very attractive, since the set up alone would cost more than $12m, and it also offered buyers “40 years of trading history in goodwill”.

Melbourne River Cruises has grown its operation from a single boat to its current fleet of seven large multipurpose commercial passenger vessels, which are designed to navigate the twists and turns and low-hanging bridges of the Yarra River.

The two-storey Spirit of Melbourne restaurant boat is part of the fleet.

Included in the fleet is the ‘‘Spirit of Melbourne’’, a two-storey cruising restaurant that accommodates up to 165 patrons and is fitted with a fully equipped commercial kitchen.

Melbourne River Cruises had strong financial results in the past year and revenue is tipped to increase significantly this year as tourism returns to the city.

Figures from Tourism Victoria show that domestic visitor numbers in November were 9 per cent higher, year on year, and down 16 per cent from before the pandemic, while international overnight visitors to Victoria were back to 59 per cent of the year ending September 2019 result.

“There is still a bit of a hangover from Covid, but it’s just going from strength to strength and coming back in a big way now,” Mr Persley said.

It is in stark contrast to the pain that the business endured throughout the pandemic.

Speaking of the effects of lockdowns at a press conference in 2021, Melbourne River Cruises owner James Ganditis said: “It’s just been devastating for me, for my workforce, and I don’t see much hope at the moment.

“It took us a long time to get a reputation.

“Melbourne is a world class event city of tourism hospitality and we’ve hit rock bottom.”

Based in the centre of Melbourne, the business offers easy access for customers to enjoy a variety of experiences including a ferry to Williamstown, Yarra River sightseeing cruises and the Spirit of Melbourne floating ­restaurant.

The business and assets of Melbourne River Cruises are being offered for sale via national expressions of interest closing on April 10.

Originally published as Melbourne River Cruises on the market for the first time since the 1980s as tourism rebounds