According to a report in Hotels ANZ, Iris Capital has purchased the 17 hotel AccorInvest Ibis hotel portfolio of 1,800 keys, in what is described as the biggest hotel deal of the year.
With the previous sale to iPG reported to have fallen through, the Iris Capital purchase is valued at around $180m, with all hotels within the portfolio are currently operated by AccorHotels as Ibis hotels with this acquisition reportedly making Iris one of largest hotel owners in the country.
Sam Arnaout. Chief Executive Officer of Iris Capital told Hotels ANZ, “We are delighted to have secured such a large portfolio in-one-line”. “This purchase fits in well with our current hospitality pub portfolio, takes our count to 45 hotels and delivers on the group’s strategy for diversification”
JLL Hotels & Hospitality Group’s Craig Collins and Peter Harper negotiated the sale of the portfolio with Collins saying, “The pure scale of the portfolio and its diversity – in terms of location, market positioning and income profile attracted significant interest from a very broad range of capital sources,” with Harper adding that the deal took year-to-date and “This deal, together with our recent sales of the Novotel Brisbane and Vibe Hotel Melbourne, is a clear demonstration of the capital depth in the Australian hotel investment market for everything from metropolitan motels to major CBD hotels.”
The portfolio originally comprised 23 hotels including six leasehold assets when sold to fund manager iProsperity Group (iPG) in September last year for about $220m, but the iPG deal did not proceed after the group collapsed and reportedly founder Michael Gu fled the country in August owing investors a reported $60m.
AccorInvest is the spun-off hotel investment platform of Paris-listed AccorHotels, with last year 58% was sold to GIC, PIF, Credit Agricole Assurances, Colony NorthStar and Amundi for €4.6bn ($7.5bn).
The portfolio of hotels sold consists of:
- Ibis Budget Canberra – 75 keys
- Ibis Budget Campbelltown – 72 keys
- Ibis Budget Casula Liverpool – 74 keys
- Ibis Budget Coffs Harbour – 70 keys
- Ibis Budget Dubbo – 65 keys
- Ibis Budget Enfield – 80 keys
- Ibis Budget Newcastle – 79 keys
- Ibis Budget St Peters – 105 keys
- Ibis Budget Sydney Olympic Park – 156 keys
- Ibis Budget Wentworthville – 102 keys
- ibis Newcastle – 97 keys
- Ibis Sydney Airport Hotel – 200 keys
- Ibis Thornleigh – 105 keys
- Ibis Budget Brisbane Airport – 93 keys
- Ibis Budget Dandenong – 71 keys
- Ibis Budget Fawkner – 103 keys
- Ibis Melbourne Hotel & Apartments – 250 keys
A report from Hotels ANZ edited by John Alwyn-Jones
