IHG invests in Pro-invest Group’s Holiday Inn Express Portfolio in Australia
Pro-invest Group announce the first closing of their AHO fund has taken place
Pro-invest Group is pleased to announce InterContinental Hotels Group (IHG) has recently invested in its Australian Hospitality Opportunity Fund (AHO). Under the A$150 million fund, Pro-invest Group is currently developing a portfolio of up to 15 Holiday Inn Express hotels across Australia. The first closing of the fund has now taken place and in addition to IHG, the fund comprises investors from established offshore family offices.
Pro-invest Group reports its roll-out of Holiday Inn Express hotels has been extremely well-received by investors and the company is now in discussion with a number of other institutions interested in investing in the Australian Hospitality Opportunity fund. This interest is being strengthened by the announcement of IHG's financial commitment, Pro-invest Group's established development and operational platform in Australia as well as its ability to rapidly roll-out Holiday Inn Express hotels.
Ronald Barrott, Chief Executive Officer of Pro-invest Group, said: "We are pleased to welcome IHG as part of our investors. IHG's commitment strongly reinforces their confidence in our roll-out of the Holiday Inn Express brand in Australia.
Australia's accommodation market is in need of new hotel supply operated under well-established international brands, particularly in the limited service segment. Our hotels will cater to the growing demand for hotel accommodation in Australia, offering a great guest experience to smart, savvy travellers regardless of whether they are visiting for business or leisure.
Despite the challenges of developing hotels in the current market, the development of our Holiday Inn Express portfolio is well underway and we see plenty of opportunity for our initial portfolio of Holiday Inn Express hotels to grow significantly in the years to come."
Pro-invest Group currently has two hotels in the pipeline, Holiday Inn Express Sydney, Macquarie Park, which is scheduled to open next year and Holiday Inn Express Brisbane, Spring Hill which will open early 2016. Both hotels have received the support of local authorities with Development Approvals received and it is expected that contractors will commence on-site later this month, in both locations.
Pro-invest Group, in close collaboration with IHG and leading industry designers and consultants, has tailored the design of the typical Holiday Inn Express hotel to meet the requirements of the Australian market which will give the brand a significant competitive advantage in the market. In addition, all hotels will be part of IHG's Rewards Club, the world's first and largest hotel loyalty programme with over 80 million members worldwide.
Pro-invest Group is currently in advanced negotiations on another five sites and is actively seeking additional sites to develop Holiday Inn Express hotels. It expects to announce further acquisitions by the end of 2014.
About IHG (InterContinental Hotels Group)
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of nine hotel brands, including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels & Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites®, EVEN™ Hotels and HUALUXE® Hotels and Resorts. IHG manages IHG® Rewards Club, the world's first and largest hotel loyalty programme with over 80 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally. IHG franchises, leases, manages or owns over 4,700 hotels and 693,000 guest rooms in nearly 100 countries, with almost 1,200 hotels in its development pipeline. InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales. Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: www.ihg.com/media, www.twitter.com/ihg,www.facebook.com/ihg or www.youtube.com/ihgplc.
About Pro-invest Group
Pro-invest Group is a private equity and real estate investment firm with in house development, asset management and hotel operation divisions. The company was founded by international real estate industry leader, Ronald Barrott, former CEO and Executive Director of ALDAR PJSC (2005 to 2010). Its head office is based in Sydney, Australia.
In 2013, Pro-invest Group signed a Master Development Agreement with IHG and consequently established a A$150 million fund to develop a portfolio of 15 Holiday Inn Express hotels Across Australia. The planned development will total approximately 2,100 rooms, in central business, suburban and airport locations in Sydney, Melbourne, Perth, Darwin, Adelaide and Brisbane. IHG will enter into franchise agreements for each of the hotels under a multiple development agreement signed between the two companies.
The principal of Pro-invest Group, Ronald Barrott, has been a strong partner for the brand, having already developed a portfolio of Holiday Inn Express properties in Europe in the 1990s and early 2000s with Stannifer Hotels. As Founder, CEO and Chairman of the company, Barrott led Stannifer to become one of the UK"s largest and most successful select service hotel groups.
For more information, visit http://www.proinvestgroup.com