Home' Hospitality Business : HB APL 2017 Contents AccorHotels restructures ADIA deal in Australia
AccorHotels has successfully reached agreement with a wholly-
owned subsidiary of the Abu Dhabi Investment Authority (ADIA) to
restructure a portfolio of 31 hotels (4,097 rooms) in Australia.
The agreement involves a portfolio which was purchased by the
ADIA subsidiary in 2013 and operated by AccorHotels.
Under the restructure of the portfolio of 31 hotels, AccorHotels will
convert 15 triple-net leases into 50 year management agreements
and extend the management term of one hotel also to 50 years (total
16 hotels) and AccorHotels’ HotelInvest arm will acquire the real
estate of the remaining 15 ibis and ibis Budget branded properties for
AUD$200 million (€137 million).
“This deal is in line with our stated strategy to optimise cash
flow generation, reduce earnings volatility and restructure lease
contracts into owned and managed hotels,” said John Ozinga, COO of
“The acquisition of the economy hotels in key locations is a
signal of our continued focus on supporting the Group’s growth
strategy by holding a selective portfolio of profitable hotel property
assets,” he said.
The hotels are located in prime locations including Sydney’s
Darling Harbour, Sydney Olympic Park and in Canberra, Australia’s
The portfolio is also spread across city and regional locations in
New South Wales, Victoria, Northern Territory, Western Australia and
Queensland and encompasses the Pullman, Novotel, Mercure, ibis,
ibis Styles and ibis Budget brands.
The acquisition will be accretive to AccorHotels’ EBIT in 2017 and
will further strengthen its market leadership position in Australia by
securing tenure on key assets.
Completion of the acquisitions is subject to the usual conditions for
this type of transaction, as well as regulatory approvals.
Accor’s Sydney Olympic Park Hotels
InterContinental Hotels Group (IHG) and Pointcorp have signed a
management agreement for a new build Hotel Indigo to be located in
Brisbane’s Fortitude Valley.
The 140-room hotel on 458 Brunswick Street is the first Hotel Indigo
signing for Australasia and is due to open in 2020.
Hotel Indigo is IHG’s lifestyle boutique hotel offering and the company
says the property will bring to life the unique vibe of the Valley – home
to the city’s cultural, creative, music, fashion and gastronomy scene.
IHG’s Chief Operating Officer for Australasia and Japan, Karin Sheppard,
said: “Since late 2014, we have worked tirelessly to find the right partners
and locations for the launch of the Hotel Indigo brand in Australasia.
“We could not be more thrilled to have secured this ideal site for our
first Hotel Indigo signing, and to be developing it in partnership with
Pointcorp who are well known for their recently completed high end,
quality developments in Brisbane including the ‘The Highgate’ and
luxuriously-appointed riverfront residential property ‘Vida’.
“We expect Hotel Indigo Brisbane Fortitude Valley to be the leading
lifestyle boutique hotel in Brisbane, bringning a new and vibrant
experience to the city.
“Guests staying at Hotel Indigo Brisbane Fortitude Valley will eat,
drink, dance, listen, shop, admire and experience everything that the
Valley has to offer. It’s a neighbourhood that’s historical yet shiny and
new; traditional but experimental.
“Hotel Indigo will bring to life the spirit of this neighbourhood, and
celebrate its diverse community,” she said.
Chris Vitale, Director, Pointcorp said: “We have a deep understanding of
the Brisbane market and this will be something entirely new and exciting –
both for us, and for the guests we will welcome in a few years’ time.
“Situated in the heart of Brunswick Street, visitors to Hotel Indigo
Brisbane Fortitude Valley will have the best of the Valley on their
doorstep: just a short stroll to a multitude of dining and entertainment
options, as well as the many varied festivals and events which take
place in the neighbourhood throughout the year.
“Each Hotel Indigo property brings to life its local neighbourhood in
its very being, and we look forward to working with IHG to capture the
unique essence of the Valley in the design of the hotel,” he said.
Hotel Indigo Brisbane Fortitude Valley will be part of a mixed-use
development which will include residences, commercial office and
retail, and it is expected to be the first development of its kind in the
area, creating a new epicentre for The Valley.
IHG’s Indigo set for Australian debut in Brisbane
An artist’s impression of Hotel Indigo
Brisbane Fortitude Valley
Hospitality BUSINESS | April 2017 | 43
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