A new hospitality real estate joint venture involving Melbourne-based Salter Brothers has acquired 11 hotels worth $620 million from Mirvac and NRMA.
The deal to buy the Travelodge hotel portfolio represents the first transaction for the new joint venture, split between Salter Brothers, Singapore's sovereign wealth fund GIC and Switzerland-headquartered Partners Group.
"The transaction enables us to capitalize on the evolving hospitality sector in Australia, positioning for growth and adding value to the portfolio via targeted capital expenditure and rebranding where appropriate," says Salter Brothers managing director Paul Salter.
The portfolio of 2,032 midscale hotel rooms located across Sydney, Melbourne, Brisbane, Perth and Newcastle currently operates under the Travelodge brand, with Salter Brothers anticipating the hotels will operate under a new brand post-settlement and following an operator selection process.
"'This significant joint venture demonstrates confidence in the Australian hospitality sector and confidence in our experienced management team with proven deal sourcing capability, active hotel asset management skills and our value-add capabilities, which will all be actively deployed across this portfolio," adds Salter Brothers director of funds management Niall McCarthy.
"Following this acquisition, we are well placed to progress towards acquiring further assets in this sector."
The acquisition is expected to be completed by the end of 2021.
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