United States-based hospitality provider Delaware North is entering the resources sector for the first time, in a joint venture with Perth-based catering and accomodation group Northern Rise Holdings.
The companies announced today they had inked a contract with Lang O’Rourke to manage two accommodation villages in Queensland.
The joint venture, known as Northern Rise Village Services, will manage 650 rooms across the two camps in Queensland’s Surat Basin, while also taking on the contracts previously held by Northern Rise Holdings.
Those contracts cover 1,200 rooms in the Northern Territory and Queensland.
Northern Rise director Gary Bradford said the joint venture’s growth strategy was focused on entering the Western Australian market to complement its activities in other states.
United States-based Delaware North entered the WA market in June, announcing plans to invest $8 million to increase its presence at Perth Airport.
That investment made it the state’s fourth largest catering company, according to the Business News Book of Lists.
Delaware North operates 15 outlets across Perth Airport’s terminals, while it is also active at all other major airports except Canberra.
It also operates catering services at the WACA Ground in East Perth and the El Questro Resort in the Kimberley.
The joint venture with Northern Rise Holdings marks a shift into the resources sector.
Delaware North Australia managing director Gary Brown said the joint venture provided the perfect opportunity for the company to shift out of its core markets.
“We have been looking for an opportunity to bring our skills and expertise to the resources sector and Northern Rise is the right partner to allow us to enter this market and compete with the established players,” Mr Brown said.
