Swiss-based global private markets firm Partners Group, in partnership with Singaporean sovereign wealth fund GIC and Australian hospitality operator Salter Brothers, has agreed to acquire a portfolio of eleven Travelodge hotels in Australia for A$620 million from Mirvac and NRMA.
The portfolio, which is the largest of its kind to transact in Australia, is diversified across key metropolitan centers, including Sydney, Melbourne, and Brisbane, and consists of over 2,000 rooms.
“Given our Relative Value approach, we have been monitoring Australia’s hospitality sector over the last year for value-add opportunities created by the fall-out from COVID-19. This portfolio represents an excellent opportunity to acquire well-located assets and gain immediate scale in the sector at a discount to pre-pandemic prices. We particularly like this portfolio as it provides initial income with potential for further yield through transformational value creation strategies. It also provides a significant foothold from which we can scale towards a larger portfolio over time,” said Rahul Ghai, Managing Director, Private Real Estate, Partners Group.
Euan Kennedy, Member of Management, Private Real Estate, Partners Group, added: “Although international travel remains restricted, there is some evidence of a steady economic recovery in Australia. Rising rates of vaccination are likely to support the progressive reopening of the economy and bode well for increased room penetration from both domestic and foreign travelers over the course of our investment. We are looking forward to working with our experienced operating and capital partners on this exciting opportunity.”
Partners Group said the portfolio represents its third direct real estate investment in Asia so far this year. Partners Group’s Real Estate business has USD 17 billion in AuM and has invested USD 22 billion since inception.