NORTH MELBOURNE, Australia—As American-based global hospitality and foodservice manager Delaware North Companies prepares to celebrate its 95th birthday next year, it will do so with five Australian properties new to its large, privately owned portfolio.
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Kings Canyon Resort
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The properties now operate under The GPT Group, parent company of Voyages Hotels and Resorts, but are soon to be branded Delaware North Companies Australia. They are:
• El Questro Wilderness Park & Homestead, The Kimberley, Western Australia
• Lizard Island Resort, Queensland
• Heron Island Resort, Queensland
• Wilson Island Resort, Queensland
• Kings Canyon Resort, Northern Territory.
Although the company’s slogan isn’t “the quiet company”—that moniker belongs to Northwestern Mutual—it’s apropos for Delaware North, which might be one of the largest conglomerates most consumers have likely never heard of. With US$2 billion of annual revenues, 50,000 associates worldwide and a corporate philosophy that espouses stewardship, the company’s additional expertise includes retail, sports facilities management, gaming and racetrack operations.
Visit Wembley Stadium in London, TD Garden in Boston, the Kennedy Space Center in Orlando or Niagara Falls and Delaware North—known for its contract work—is there, almost anonymously. Subsidiary DNC Parks & Resorts owns five U.S. resort properties in well-known locations: Gideon Putnam Resort in Saratoga Springs, New York; Holiday Inn West Yellowstone, Montana; Tenaya Resort at Yosemite National Park, California; Wuksachi Lodge at Sequoia National Park, California, and The Lodge at Geneva-on-the-Lake, Geneva State Park, Ohio. In British Columbia, Harrison Hot Springs Resort & Spa bears the DNC brand.
The global financial crisis hasn’t impacted the methodical, long-term strategic plan of Delaware North founder Jeremy Jacobs and his three sons, Jerry, Lou and Charlie. Acquisition of the Australian properties wasn’t an overnight decision—that isn’t the way Delaware North operates, according to Maria Kucherhan, executive director of marketing and strategic growth for the subsidiary, Delaware North Companies International, which includes Australia, New Zealand and the United Kingdom.
“The opportunity came about during this period of time, and we had to bite the bullet if we wanted to diversify,” Kucherhan said. “Over the years, we’ve looked at a number of other properties with our stringent criteria.”
Delaware North started the Aussie process in September 2008. The properties had been on the market for more than 12 months and the balance was just right, buying during the downturn and not at the prices of five or six years ago, Kucherhan said.
Delaware North’s purchase of these resorts is no surprise but part of an overt strategy to move into hotels and resorts in Australia—a decision that brings distinct challenges given the disparate geographic spread of what Delaware North has purchased.
The company has a 20-year history Down Under, with operations at major airports in Australia and New Zealand at Sydney’s Circular Quay
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Wilson Island Resort, Queensland
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and Central Railway Station and Melbourne’s Southern Cross Station. Entertainment and sports venues include Melbourne Park and Etihad Stadium.
While there are numerous regulatory approvals required to enable the transfer of the properties to their new owners, the formal completion of these sales is planned toward the end of October, according to Voyages’ management.
As with all previous sales, until the time of completion, Voyages will continue to operate all aspects of these resorts on a business-as-usual basis. That means Voyages continues handling reservations, inquiries, terms, conditions and booking agreements.
“It has been a privilege to own and operate these unique properties located in some of the most spectacular and diverse regions in Australia,” said Chris Tallent, Voyages CEO. “We’re proud of their achievements and know they’ll remain among the most iconic and experiential resort destinations in Australia and will continue to deliver exceptional visitor experiences.”
GPT, recognized for construction development, announced its decision to divest its hotel and resort portfolio, which includes Voyages Hotels & Resorts, in July 2008 after more than 10 years of ownership and investment. Some view the properties as noncore assets. The company said the planned sale of the remainder of the Voyages portfolio continues, which includes Ayers Rock Resort, Longitude 131 and Brampton Island.
Delaware North will sustain its commitment to be a steward of the experience with all newly acquired properties, so don’t expect massive changes that disrupt the nature of the places themselves. Its own GreenPath is the first environmental-management system of a U.S. hospitality company to be registered to the standards put forth by the International Organization for Standardization (ISO 14001) and has won 40 awards.
The company’s notion of stewardship will play out in its new acquisitions as it has with current holdings, including all-around facility management, interpretation, education and the green essence, Kucherhan said.
“It’s also about getting the room, retail, food and beverage and customer service right,” she said. “Our commitment is to the guest, to story-telling and to architecture that fits with the natural setting.”
