The Hoffmann family of companies purchases the Star Line Mackinac Island Ferry Co.
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The second of two ferry services that carry visitors from mainland Michigan to Mackinac Island has been sold to the Florida billionaire who bought Shepler’s Ferry two years ago, sources confirmed to the Detroit Free Press.
Star Line Mackinac Island Ferry Co. closed the deal at 11:59 p.m. Friday with the Hoffmann Family of Companies, led by patriarch David Hoffmann of Naples, Fla. He says he grew up working with his father, a milkman who made early-morning door-to-door deliveries in tiny Washington, Missouri.
Employees were informed of the sale on Saturday morning.
For the newly acquired ferry company, business operations will continue as usual and the jobs of all 200 employees will be secure, said Jenny Gezella, president of Hoffmann Marine, which also owns Shepler’s and Sip n’ Sail Cruises on Mackinac Island.
“All staff will remain,” she said. “We look forward to providing a first-class and efficient service to and from the island. All rates are subject to a licensing agreement. All rates will remain the same.”
Ferry fares, which are set by a licensing agreement with the island, would not change as a result of the sale, Gezella said.
She did not want to disclose the selling price.
Gezella said this latest acquisition makes the Hoffmann Family of Companies the largest property owner in the Mackinaw City and St. Ignace area. Two local newspapers, the Mackinac Island Town Crier and St. Ignace News, were also purchased by the Hoffmann Group.
Since purchasing Shepler’s in 2022, it has completed an estimated $1.3 million worth of upgrades to five ferry engines, and those types of investments will continue, said Gezella, who flew to Michigan to finalize the details of the latest acquisition.
Starline service has been disrupted by equipment problems again this season, a constant concern for island leaders. Problems have included propulsion and steering failures, according to documents obtained by the Free Press from the U.S. Coast Guard.
The reaction to the takeover is immediate
The news of the takeover caused excitement on the island.
Bart Berkshire, front manager of the Chippewa Hotel, which also houses the Pink Pony Bar, told the Free Press, “The Hoffmann family has done a great job carrying on the legacy of Shepler’s Ferry. I can’t wait to see how they will improve the passenger ferries to and from Mackinac Island.”
Tim Hygh, executive director of the Mackinac Island Tourism Bureau, said Saturday afternoon after learning the news, “The Hoffmann team has really immersed itself in the island culture over the past few years. We look forward to learning more about their vision for the Mackinac Island Ferry Company.”
The 2024 season is expected to be strong, and ferry traffic accordingly, Hygh said. “(Hotel) room revenue increased 17.3% in May compared to last year,” reaching $9 million for the first time. “We’ve never had a May like this, and last year was a record year. The island has experienced great growth over the last decade.”
All eyes are on Mackinac and the preservation of tradition
Mackinac Island, a popular tourist destination, is a car-free island known for its hiking, biking and horse-drawn carriage rides.
When Hoffmann made an offer for Shepler’s, he didn’t make the highest offer. But the Shepler family wanted to sell to another family, Chris Shepler told the Free Press at the time. David Hoffmann heads the Hoffmann Family of Companies with his wife, Jerri, and sons, Geoff and Greg.
“We’re a family-owned business, so we don’t have shareholders, we don’t have quarterly reports or quarterly financial statements that we have to show to Wall Street,” David Hoffmann told the Free Press in 2022. “It’s very important to us to preserve the culture of Mackinac Island, and that’s what we’ve embraced. We don’t want that to change.”
The Shepler ferries alone carry about 650,000 passengers from Mackinaw City and St. Ignace through the Straits of Mackinac to Mackinac Island between April and November. The newest ferry, which carries 210 passengers and began service in 2020, cost $5 million. Chris Shepler is still part of the Shepler ferry service today and is in touch with the island’s business leaders.
Shepler’s annual revenue alone is in the tens of millions and growing steadily, Shepler told the Free Press at the time of the sale. He declined this weekend to comment on his former competitor, referring to Gezella, who oversaw the recent deal.
who is who
The Hoffmann family runs a multibillion-dollar company with operations in 27 countries. Hoffmann confirmed he is the largest real estate owner in Naples, Florida. The family renovated downtown Naples, Winnetka, Illinois, on Chicago’s north shore, and Avon, Colorado, at the base of Beaver Creek ski resort, Hoffmann said. Their investments in vineyards in Augusta, Missouri, have also attracted attention.
The ferry company purchased this week will be renamed Mackinac Island Ferry Company in 2022 to consolidate the Star Line Mackinac Island Hydro-Jet ferry fleet begun in the 1970s, the Arnold Line ferry fleet in operation since 1878, and the Mackinac Marine Services (MMS) shipyard founded in 2019, according to a press release from the Hoffmann companies sent Saturday afternoon.
More: Harbour View Inn Hotel on Mackinac Island sold to couple from Grosse Pointe
More: Mackinac Island gets a new restaurant on Main Street in honor of an old Michigan family
With this acquisition, the US fleet in Hoffmann Marine’s portfolio will expand to 46 ships in seven states, the press release said. Hoffmann bought Sip n’ Sail in May 2024.
“With this expansion, HF Companies now owns more than 116 properties, including docks in Mackinaw City, Mackinac Island and St. Ignace, 51 buildings and 6,500 parking spaces,” the press release states. “This makes the company the largest property owner in the region and employs 500 people in the Mackinac region.”
Contact Phoebe Wall Howard: 313-618-1034 or [email protected] her on Twitter@phoebesagte.
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