The record $620-million sale of the Travelodge hotel portfolio is the latest sign of soaring demand from global investment giants looking to check-in to Australia’s property assets on the verge of a market rebound.
Contracts were exchanged late last week to secure the deal, which is expected to be settled by the end of the year.
The acquisition of one of the largest hotel portfolios to be offered to the market in Australia is the first in a joint venture between Melbourne-based Salter Brothers and two of the world’s biggest property investment powerhouses.
Backed by Singaporean sovereign wealth fund, GIC, and Swiss global private markets investor, Partners Group, the purchase is an investment coup for Salter Brothers and a major confidence boost for Australia’s hotel and property sectors.
It includes 11 hotels—eight in Sydney, one in Melbourne’s Southbank, one in Brisbane and one in Perth—comprising 2032 rooms.
Significantly, a total of 18 bids for the portfolio were put on the negotiating table—the majority being strong offers from investment groups in the UK, Europe, Asia and the US.
“The Travelodge sale underscores the fact that Australia is now a recognised global investment destination,” said McVay Real Estate’s Sam McVay, who negotiated the deal.
“It’s recognised in the same way that America is, and Hong Kong is, and Europe is.
“There’s just so much demand for real estate in Australia at the moment. It’s attracting a lot of interest from international investors, more than we’ve ever seen.
“I think that’s got a lot to do with the fact that Australia, for the most part, has handled the pandemic very well and there is now a widely regarded view that when things reopen it’s going to bounce back stronger than it was.”
In a single transaction, the Travelodge acquisition almost doubles the number of rooms Salter Brothers has under management in its portfolio of hotel assets in Australia.
Join 50,000 property professionals who stay up to date with our newsletters.