$ 620 million Travelodge hotel portfolio sold to Salter Brothers JV by McVay Real Estate
Salter Brothers Managing Director Paul Salter said: “The transaction allows us to capitalize on the evolution of the hospitality industry in Australia. a big indicator for Australia’s future, we’re seeing that across all sectors, which is really encouraging.
Paul Salter of Salter Brothers has confirmed the acquisition of the Travelodge portfolio from Mirvac and NRMA. The portfolio consists of 11 hotels valued at AU $ 620 million and was purchased by Salter Brothers as part of a new Australian hotel sector joint venture with the Singapore sovereign wealth fund, GIC and the leading investment firm in private markets, Partners Group (acting on behalf of its clients). The transaction marks the joint venture’s first acquisition, creating a platform of scale and geographic diversification across Australia.
Salter Brothers Managing Director Paul Salter said: “The transaction allows us to capitalize on the evolution of the hospitality industry in Australia, positioning ourselves for growth and adding value to the portfolio through spending. targeted investment and rebranding, if applicable.
The portfolio of 2,032 mid-range hotel rooms located in Sydney, Melbourne, Brisbane, Perth and Newcastle currently operate under the Travelodge brand, with Salter Brothers anticipating that following an operator selection process, the hotels will operate under a new brand after payment.
The portfolio will benefit from Salter Brothers’ already proven hotel asset management capacity, as the Group plans to reposition assets.
Niall McCarthy, Director of Fund Management at Salter Brothers, said that “this important joint venture demonstrates confidence in the Australian hospitality industry and confidence in our experienced management team with a proven business research ability, active skills in hotel asset management and our value-added capabilities, all of which will be actively deployed in this portfolio. Following this acquisition, we are well positioned to progress towards the acquisition of new assets in this sector.
The acquisition is expected to be finalized by the end of 2021.
Image below: Paul Salter Brothers Salter.