January 18, 2026 — 5:00am
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On South Australia’s Kangaroo Island, the luxury end of accommodation has long been anchored by Southern Ocean Lodge, while many other stays skew to holiday houses and self-catering.
For 20 years, the Mercure Kangaroo Island Lodge has been a kind of middle pillar, providing full-service hotel accommodation. Now it has added eight new luxury villas that combine villa-style privacy and hotel service.
One of the Mercure Kangaroo Island Lodge villas.
“There’s certainly been pressure on accommodation supply on Kangaroo Island,” says Rodney Harrex, chief operating officer of South Australian hoteliers, 1834 Hotels, which operates the Mercure. “Particularly in the quality mid-tier and upper-mid-tier segments.”
The new villas were driven by demand as much as vision. The lodge’s existing 38 rooms regularly reach capacity, especially during peak periods, with bookings turned away. “Guests were telling us they wanted more space and privacy,” Harrex says, “but still wanted access to our restaurant, bar and services.”
Deckside at the new villas.
The new villas are perfect for lounge lizards.
At 64 square metres, each villa is roomy, with separate living areas, king beds and expansive water views across American River Bay. Design focuses on natural materials, clean lines and colours intended to sit quietly in the surrounding landscape.
It is more than six years since the Black Summer fires began on Kangaroo Island in December 2019.
“Bushfire resilience was absolutely front of mind,” Harrex says. The experience reshaped how development is approached across the island. The villas incorporate fire-resistant materials, ember protection, defendable space and close consultation with the Country Fire Service and council.
More room with a view.
Island luxury.
Environmental sensitivity was equally critical. Native planting and careful stormwater were part of securing community support. “You can’t build here without listening,” Harrex says. “And nor should you.”
If the villas answer a long-standing accommodation need, The Cliffs Kangaroo Island may change who visits – and when.
Looming just over the horizon is this dramatic new links-style golf course, which is expected to open for preview play in early 2026. It’s already attracting national and international golfing community attention.
Artist impression of The Cliffs, a new world-class golf course on Kangaroo Island.
Kangaroo Island’s international reputation has long been led by the award-winning, luxurious Southern Ocean Lodge, which was decimated by the fires and reopened in December 2023. Now the new villas and golf course suggest it is entering a new phase of tourism.
Designed by Australian golf consultant, Darius Oliver and set atop 500-million-year-old cliffs overlooking the Southern Ocean, the 18-hole course is being positioned as a destination in its own right.
Harrex says golf tourism fits naturally with the island’s strengths. “We’re seeing more guests staying three, four, five nights. Golf works beautifully with that slow-travel style: one day exploring, one day eating and drinking, one day on the course.”
The island already has two nine-hole golf courses, and a unique one-hole attraction at Dudley Wines.
Artist impression of the new course.
But the new course is on a whole other level and comes with spectacular views and luxury amenities including a world-class clubhouse.
Mercure Kangaroo Island Lodge will be among the closest accommodation options.
For many visitors, Kangaroo Island’s most accessible luxury remains its produce. Farm gates, cellar doors and small producers are scattered across the island.
Harrex says of its dining scene: “There are genuinely excellent places showcasing local produce.” He points to seafood, honey, spirits and wine.
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At the lodge’s Reflections Restaurant, the menu leans heavily on island ingredients: King George whiting, oysters, free-range lamb, vegetables and Kangaroo Island Spirits gin, all served with water views.
“What we’ve learned is that visitors genuinely want to taste the island,” he says. “They’re not here for generic food.”
From Harrex’s perspective, the future is about refinement rather than reinvention. “We’re focused on doing what we’ve built really well,” he says.
See kilodge.com.au
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Julietta Jameson is a freelance travel writer who would rather be in Rome, but her hometown Melbourne is a happy compromise.Connect via email.From our partners
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