$1.2 billion Hamilton Island deal sets precedent for Australian island resorts
Hamilton Island is located off the north Queensland coast. (Supplied)
In short:
Hamilton Island has been sold to US equity firm Blackstone for an estimated $1.2 billion, from the Oatley family who acquired it in 2003.
The sale is expected to drive prices for island property in Australia and reduce interest from potential buyers.
What’s next:
The sale is subject to review and approval from the Queensland government.
Hamilton Island, in the heart of Queensland's Whitsunday Islands, is being sold to US investors for an estimated $1.2 billion, pending state government approval.
American equity firm Blackstone announced on Tuesday it would purchase the resort destination from the Oatley family, who acquired it in 2003.
The tropical north Queensland island near the fringe of the Great Barrier Reef spans 1,133 hectares and is home to luxury hotels, 20 restaurants, a commercial airport and supports an 18-hole golf course on neighbouring Dent Island.
Hamilton Island is a gateway to the Great Barrier Reef. (ABC Tropical North: Melissa Maddison)
Sale to drive market
Richard Vanhoff is a specialist in selling islands and said the price tag for Hamilton Island was "extraordinary".
Richard Vanhoff manages sales of private islands and resorts in Australia. (Supplied: Richard Vanhoff)
"It's blown my mind. I really thought that it would have got a lot less," he said.
Mr Vanhoff, who was not involved in the sale, believed the transaction would lift prices in the island property market and potentially reduce interest from buyers.
After living on Hamilton for 18 years, he said few destinations compared.
"I think it's going to make it harder for a person like me to sell, simply because the house price naturally will go up in [owners'] heads," he said.
"I think it's going to drive the market."
Luxury island resort development and sales have stalled in Queensland, with once-popular spots like Brampton Island and Great Keppel Island damaged by cyclones and years of neglect.
Business prepares for change
Lisa Christofersen manages an independent art gallery that has owned a lease on Hamilton Island since the early 1980s.
Foot Young (left) and Lisa Christofersen (right) operate an art gallery on Hamilton Island. (Supplied: Lisa Christofersen)
She witnessed the impact of new ownership when the Oatley family took over in 2003.
"In my personal opinion, the feeling on the island changed," she said.
"It was fairly significant — the island feeling went from individually owned businesses with their own flavour … some of the other areas of the island definitely changed and perhaps to me looked a little bit more corporate and modern."
Close to 2,000 people live on Hamilton Island, with many directly employed by its current owners.
"I don't see any negativity about the [Blackstone] sale; change is fantastic," Ms Christofersen said.
"We should pray that [our lease is] retained."
Hamilton Island Race Week is held annually in August. (Supplied: Hamilton Island Race Week)
Oatley family pay tribute
After financial difficulties in 1992, Hamilton Island Limited went into receivership, and the Island was temporarily held by BT Hotel Group and managed by Holiday Inn.
Australian businessman Robert Oatley, with a background in exporting coffee beans and wine, purchased the island in 2003 for close to $300 million.
When announcing the sale, the Oatley family said his passion and "significant investments" had helped to turn the island into "one of Australia's most loved and visited destinations".
"Hamilton Island has a special place in the hearts of many Australians," the family said in a joint statement.
Guests on Hamilton Island can spot whales from their balconies generally between June and October. (Supplied: Kellie Leonard)
"We are delighted to have a partner of Blackstone's calibre and resources to continue the legacy."
Blackstone's chairman of Asia Pacific, Chris Heady, said in a statement that the company was committed to "investing in the long-term success of Hamilton Island" and its local businesses and community.
The transaction will be reviewed and subject to approval from the Queensland government.