Delaware North buys El Questro resort

United States-headquartered Delaware North has boosted its Australian hospitality business after buying five resorts, including El Questro in the Kimberley, from property investment company GPT Group.

"We have built out business in Australia in sports stadiums, entertainment venues and travel hospitality," Delaware managing director Jonathan Tribe said.

"The move into the ownership and operation of world class resorts is the next stage of our long term growth."

Other resorts included in the transaction were Lizard Island, Heron Island and Wilson Island, all in Queensland and Kings Canyon resorts in the Northern Territory.

GPT has also sold six other resorts to unnamed buyers, with proceeds from the sales, including the Delaware transaction, totaling $84.9 million.

GPT said the resort sales were at a 40 per cent discount to the December 2008 book value.

Proceeds from the sale will be used to reduce GPT's borrowings.

GPT said the sale pricess for the remaining hotel and tourism assets - Brampton Island resort, Ayers Rock resort and Four Points by Sheraton - was progressing.

Delaware said it will offer current staff the opportunity to stay on when it assumes management of the resorts, expected in late October.