Melbourne-based property investment firm SBG Hotel Group has today confirmed development plans for a new hotel property on its existing land asset in Canberra. The planned $50M development will be a midscale offering with up to 250 guest rooms and will be built on the same site as the existing SBG-owned Crowne Plaza Hotel on Glebe Park. This will be the seventh hotel, across four cities for the Group, moving it closer to its stated target of $1billion.
A letter of intent has been signed with InterContinental Hotels Group (IHG) to manage the hotel under the Holiday Inn Express brand, which is focused on simple, smart, engaging travel and offers a midscale complement to the existing, upscale Crowne Plaza. Having two IHG-managed hotels housed on the same site would allow SB&G to broaden its offering and further tap into both the corporate and growing leisure and tourism markets that travel to Canberra.
Managing Director of SBG Hotel Group, Mr. Paul Salter said, “We saw an opportunity to bring a differentiated hotel offering to the Canberra market and strengthen SBG’s relationship with IHG, who manage our complete hotel portfolio across its multiple brands. While the Canberra market has been strong over recent years, the majority of hotel supply that is planned is upscale, with the midscale market remaining under-serviced.”
Leanne Harwood, IHG’s Managing Director – Australia & Japan, said, “We are thrilled to build on our great partnership with SBG, as we plan to bring Holiday Inn Express to Canberra. With faster check in and breakfast for everyone, Holiday Inn Express gives guests a simple, engaging place to recharge and get a little work done. We think it’s a great fit for Canberra’s savvy traveller.”
The hotel is scheduled to open in 2021.
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About SBG Hotel Group
SBG Hotel Group was formed in December 2015 by SBG to conclude the largest hotel transaction in 2015/2016 with the acquisition of the $500 million IHG Portfolio.
SBG Hotel Group’s strategy is to build a $1 billion plus hotel group in Australia, with future growth from either acquisition and/or development of 3 to 5-star hotels, located predominately along the eastern seaboard and select regional areas of Australia.
The Group’s current portfolio consists of six hotels across Sydney, Melbourne, Canberra and Gold Coast.