For Far North Queensland (FNQ), 2022 has been a stellar year with the hotel market further capitalising on strong levels of domestic tourism demand and seeing substantially improved buyer appetite for resorts, hotels and motels.

Earlier this year Eco Village Resort in Mission Beach was purchased by owner-operators Ben, Travis and Jess. This picturesque resort, set in unspoiled rainforest only metres from Mission Beach’s iconic golden stretch of coastline, offers self-contained villas and spa suites.

With the benefit of hindsight, the timing of their purchase proved to be extremely savvy.  What has transpired in the market since JLL Hotels & Hospitality Group’s Senior Vice President, Gareth Closter, who brokered the sale of the property, sat down with the new owners to discuss why they purchased the property and what they’ve experienced since taking over.

Q&A:

1. What attracted you to Eco Village and the Mission Beach area?

It was, foremost, the opportunity to purchase this amazing piece of real estate. It was only after visiting Mission Beach and meeting the locals that I really became aware of how great this place is.

I’ve travelled to many idyllic beach destinations in Italy, France, Croatia, Indonesia and throughout Australia and like a lot of our guests confirm, Mission Beach is easily one of the best. This region is the only place in the world where two world heritage UNESCO parks adjoin – where the reef meets the rainforest.  The nearby Daintree Rainforest was described by Sir David Attenborough as “the most extraordinary place on planet earth”.  After spending time in this unique region, we completely understand why!

2. Ben, is this your first resort/hospitality asset and if not, how did you enter the industry?

Whilst working in the tourism market providing holiday packages for golfers at golfrates.com.au, we purchased and renovated a 14 cabin property just south of port Macquarie, NSW (Little Palm Cabins).

This property has a similar capacity to Eco Village and we found a growing number of travellers looking for a bespoke level of accommodation that leans more towards quality over quantity.

Eco Village in Mission Beach is ripe for a transformation into this model, given its location, the unique position of the property and the space per guest.

3. What made you confident enough to proceed with the purchase given the COVID-related risks and uncertainties that existed at the time?

From our perspective, it was only a matter of time before Australia would fully re-open.  We considered that the prolonged closure would have created a backlog of local and international visitors, all keen to travel outside their borders.  

4. How has the first six or so months of ownership been?  Any/what surprises have there been?

We were a little surprised not to have seen at least a small drop in bookings after the school holidays, buts it’s been flat out. This, in addition to the slowly increasing number of European travellers, has made a great start to the 22/23 FY – and undeniably a great sign for FNQ tourism in general!

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5. Mission Beach has benefited from the completion of the Clump Point boating infrastructure project and now the Esplanade looks set for an upgrade. How do you see these major infrastructure projects impacting the area?

I was really surprised to see the magnitude of investment in the Clump Point boating infrastructure. It’s certainly testament to the vision that the state has in this area.

Of course, it’s easy to say that all progress is good. In a place like Mission Beach, however, it needs to be done strategically. From a tourism standpoint, sure the esplanade needs an upgrade. But it needs to be in keeping with the spirit of this village, or it risks being lost as another shiny, stainless steel esplanade, not unlike every other one built in Australia over the past 20 years.

I believe this region is in the early stages of a wave of investment and it will be exciting to be a part of it.

6. The Queensland hotel market, particularly in FNQ, has seen a boom in 2022 driven by domestic tourism. How has Eco Village performed against your projections and expectations?

In all honesty, it hasn’t really been that surprising. The weather has been perfect up here, the people are more relaxed and it’s less crowded…I think the FNQ boom has only just begun!

7. In terms of the future, now that you have a better understanding of the Mission Beach and FNQ market, what are your views on 2023?

Very few Australians realise how different the QLD wet tropics are to the rest of Australia. Along this coastline and around Mission beach in particular, it’s almost like a different country. Many of our guests liken it to holidaying in some areas of South East Asia.

Pictures don’t do this place justice. Most of our Australian guests have their expectations blown away after visiting this region.

I think that 2023 will be a great year for FNQ and I think Mission Beach will be a hot spot on that map.

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8. Have you taken any bookings from in-bound international guests as yet?  Do you expect in-bound international bookings to  increase in 2023, or are you completely focused on the domestic tourism market?

We have been seeing travellers from overseas, but not yet in droves. I think that Cassowary Coast Tourism, TTNQ and the QLD government are working well to promote FNQ and if Australia hasn’t already become too expensive to visit, we will eventually see the pre-Covid numbers resume.

9. Have you got any significant changes, upgrades or refurbishments planed for Eco Village or will you keep the property going as-is?

We plan to completely refurbish all rooms, the pool area and general facilities with the addition of some premium, ocean view, two-bedroom Villas. A property of this calibre can support any level of experience so the hardest task for us moving forward is pairing the offering with Mission Beach Village as a whole. This may also need to done in harmony with the future of Dunk Island and the current upgrade of a number of other commercial properties in Mission Beach.

10. To wrap up, is there any advice you have for anyone entering the market or looking to buy small scale accommodation assets?

In accommodation real estate, you will hear the phrase “East is for show and West is for dough” and this may be true. But if you are looking at running the business onsite, make sure you’ll enjoy living there first. You will accomplish far more in a town you love.  The Mission Beach area is spectacular and is very special to the locals. It’s evident when speaking to them. They really love their town and it’s one of the many reasons that visitors do too.

Related Reading:

Beachfront resort North Queensland sold by JLL | The Hotel Conversation

Castaways Resort & Spa Mission Beach for sale - JLL | The Hotel Conversation

JLL further expands Hotels team with dedicated mid-markets and management rights focus | The Hotel Conversation

Ocean front resort with double digit returns and limited competition - JLL | The Hotel Conversation

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JLL Hotels & Hospitality Group’s Senior Vice President, Gareth Closter.