people sitting down near table with assorted laptop computersAlloggio Group Limited (Alloggio or Company) (ASX: ALO), a leading operator of short-term rental accommodation (STRA) in Australia, announcesit has executed a binding agreement to acquire Magnetic Island’s leading holiday property management business, Best of Magnetic, for $2.95 million.The acquisition facilitates Alloggio’s entry into a new market, North Queensland, and significantly expands Alloggio’s footprint adding ~160 properties and a car rental business to Alloggio’s portfolio of over ~1,800 holiday properties on the east coast of Australia.
The holiday properties will be integrated onto Alloggio’s proprietary cloud-based technology platform which provides an end-to-end management solution for holiday property owners.
For the 12 months ended 31 December 2021, Best of Magnetic generated gross booking value of ~$6.5 million and ~$1.5 million annual gross revenue despite being impacted by Queensland border closures. The acquisition of Best of Magnetic is expected to be immediately earnings accretive for Alloggio, pre-synergies and any new growth opportunities.
Magnetic Island is one of North Queensland’s most popular tourist destinations, with year-round tourism demand generating consistent revenues for holiday property owners and managers.
Daily operations of Best of Magnetic will continue to be overseen by the existing management team supported by Alloggio’s centralised marketing, distribution and finance teams.
Alloggio CEO and Founder, Will Creedon, said: “With Magnetic Island, the clue is in the name. We are excited to offer Alloggio’s range of premium services to holidaymakers year-round, particularly travellers following the sun over the winter monthsto such a quintessential North Queensland holiday destination. Theacquisition of Best of Magnetic facilitates our entry into the attractive North Queensland market and continues our strong momentum following our recently announced acquisitions in Noosa and on the Great Ocean Road. The acquisition is consistent with our growth strategy of growing holiday property management rights and we are excited about the significant pipeline of opportunities ahead as Australian domestic tourism continues its strong rebound.”
Alloggio will fund the acquisition from existing cash reserves incorporating the funds raised in its IPO in November 2021.