Partners Group, GIC and Salter Brothers Acquire Australia’s Travelodge Hotels for AUD620 Million

Switzerland-based global private markets firm, Partners Group and Singapore sovereign wealth fund, GIC have joined hands together with Australia-based hospitality operator, Salter Brothers, to acquire a portfolio of eleven Travelodge hotels in Australia in an AUD620 million deal. The firms will purchase the portfolio from Australia-based property group, Mirvac, and NRMA, a travel company in Australia and New Zealand. This deal marks the largest hotel portfolio transaction in Australia. According to Rahul Ghai, managing director of Partners Group, the portfolio will allow the firm to “gain immediate scale in the sector at a discount to pre-pandemic prices”. Travelodge’s hotels include over 2,000 rooms across key metropolitan centres in Australia such as Sydney, Melbourne, and Brisbane. Partners Group believes that this acquisition will provide an opportunity to capitalise on the long-term relative value of Australia’s hospitality sector. The joint venture amongst three firms will see them improve the utilisation of hotels through initiatives like rebranding, select upscaling, and widening visibility through the expansion of loyalty and rewards programmes. This deal marks the third direct real estate investment in Asia this year for Partners Group and their real estate business currently stands at USD17 billion in assets under management.

Thailand-based Minor International Sold Two Hotels in Algarve, Portugal

Thailand-based hotel operator Minor International (“Minor”) has announced the sale of two properties, Tivoli Marina Vilamoura and Tivoli Carvoeiro in Algarve, Portugal to Spain-based real estate investment manager, Azora European Hotel & Lodging (“Azora”) for EUR148 million. Situated 30 minutes’ drive from Faro Airport, the 383-key Tivoli Marina Vilamoura features four restaurants, three bars, an indoor swimming pool and two outdoor swimming pools, a spa, a gymnasium, a kid’s playground and over 12,000-square-metre indoor and outdoor event space. The 248-key Tivoli Carvoeiro is 50 minutes’ drive from Faro Airportand features three restaurants, three bars, a swimming pool, a kid’s playground, a spa, and a 1,300-square-metre event space. Minor will continue to operate both hotels under the name Tivoli for 20 years with options to extend an additional 10 years. The completion of the sale brings a net gain of EUR26 million for Minor and will further improve the overall return of the Tivoli portfolio. Earlier this month, Minor has signed another sale-and-leaseback agreement over the 255-key NH Collection Barcelona Gran Hotel Calderón with US-based LaSalle Investment Management for EUR125.5 million, part of Minor’s planned asset rotation decision made in 2020.

Clark International Airport’s New Passenger Terminal Completes Construction

Clark International Airport’s (“CIA”) new passenger terminal building has been completed and slated to open soon. Located 1.5-kilometre from the existing Clark passenger terminal, the new passenger terminal will cater to both domestic and international passengers. It has four levels, 18 aerobridges, a floor area of 110,000 square metres and a capacity for eight million passengers annually. The operations and management of CIA will be overseen by the consortium, Luzon International Premiere Airport Development Corporation (“LIPAD”). CIA is also expected to create 150,000 new jobs, about 0.4% of the total employed persons in the Philippines. During the inspection of the new building on 17 July 2021, the Department of Tourism expressed continued support for the government’s infrastructure programme. Department of Transportation Secretary, Arthur Tugade, stated that this new terminal will provide a modern travel experience and help the economy recover from the COVID-19 pandemic, whilst equipping Northern and Central Luzon with transportation infrastructure for future development. Through production links, multiple supporting industries such as tourism, services and infrastructure industries are expected to benefit from these improvements. LIPAD has also mentioned that the new terminal building was designed with the global pandemic in mind to provide a safe experience for travelers; it is thus equipped with advanced technologies and vital contactless solutions.

Samui Plus Model Expected to Generate THB180 Million in the First Month

On 15 July 2021, the Thailand government has launched the “Samui Plus Model” project, where vaccinated international tourists could visit the island of Koh Samui, Koh Tao, and Koh Pha Ngan. This project is similar to the Phuket Sandbox, where visitors are required to stay in Alternative Local Quarantine (ALQ) hotels upon arrival and have to undergo a COVID-19 test. The visitors can leave their rooms and enjoy the hotel’s facilities upon a negative COVID-19 result. Visitors can travel in designated routes on the island from day four to day seven and could move out of the ALQ hotels from day eight onwards. Visitors could travel freely in Thailand after 14 days. To facilitate this project, Bangkok Airways have resumed its first international service between Samui and Singapore, with a flight frequency of three flights per week. Officials expect this project to generate TBH180 million in its first month and are discussing plans to reopen several islands in Krabi and Phangnga in August and September, respectively.

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