Iris Capital has purchased the 17 hotel AccorInvest portfolio, in the biggest hotel deal of the year.
AccorInvest Portfolio sold to Iris Capital for $180m
Portfolio consists of 17 hotels / c. 1,800 keys
Previously sale to iPG fell through
Iris Capital has purchased the 17 hotel AccorInvest portfolio for about $180m, in the biggest hotel deal of the year.
All hotels within the Portfolio are currently operated by AccorHotels and this acquisition makes Iris one of largest hotel owners in the country.
"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," Mr Arnaout of Iris Capital said.
JLL Hotels & Hospitality Group’s Craig Collins and Peter Harper negotiated the sale of the portfolio.
"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," Mr Collins said.
Mr Harper said the deal took year-to-date hotel transaction volumes to almost $600 million "an incredibly strong result given the start to the year we had".
"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. The iPG deal did not proceed after the group collapsed and 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. Last year 58% was sold to GIC, PIF, Credit Agricole Assurances, Colony NorthStar and Amundi for €4.6bn ($7.5bn).
Portfolio 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