SBG: Our top 8 highlights of 2018

As 2018 draws towards a close and we reflect on the past year, we wanted to share with you our top 8 highlights from across our Property, Private Equity, Credit and Emerging Companies Funds offering in 2018.

Property – SBG Hotel Group, Australia

1. Acquiring the Watermark Hotel, Gold Coast and converting to new IHG global brand voco in just 5 months

SBG Hotel Group acquired the Watermark Hotel on the Gold Coast in March 2018 and from settlement in June, worked closely with partner IHG to refurbish the hotel and launch it as the first Vocohotelin the world in just 5 short months. The AUD$7.5M refurbishment included refurbishing all 389 rooms and all outdoor spaces, making it a sought after new hotel experience for the flourishing Gold Coast tourism and business leisure market, further strengthening SBG’s partnership with IHG.

 

2. Successfully completing Stage 1 AUD$25M renovation of Crowne Plaza Melbourne

As 1 of the 5 initial SBG Hotel Group hotels acquired in 2015, the Crowne Plaza Melbourne’s Stage 1 refurbishment of all 402 guest rooms, completed in November 2018, was an important milestone for the Hotel Group.

The property is absolute riverfront and ideally located close to Melbourne’s CBD, Convention Centre and Southbank entertainment and leisure precinct, making it highly appealing for business and leisure travellers. Stage 2 Refurbishment of the hotel’s restaurants, bars and reception areas have just commenced and will be complete in 2019.

 

3. Development of 2 new Hotels in Melbourne and Canberra in 2019/2020

With much of the planning work carried out throughout 2018, SBG Hotel Group has committed to the development of 2 new hotels in Australia in 2019/2020– being a Holiday Inn Express, Canberra, to compliment our existing Crowne Plaza Hotel in Canberra, and a new hotel in Flinders Lane, Melbourne.

These new developments will take the SBG Hotel Group portfolio to 8 hotels across the 4 major markets of Melbourne, Sydney, Gold Coast and Canberra in 2019/2020.

 

 

SBG Hotel Group planning to launch AUD 200M Capital Raise in 2019

SBG’s 2 new hotel developments in Canberra and Melbourne, together with our current capital expenditure plans, will see the Group launch a capital raise of up to AUD200 Million in 2019 to be predominantly funded by local and international institutional investors including major Australian Superannuation Funds. Our existing Atlas and SBG investors will be able to participant to invest in the Hotel Group. Please contact us for further information.

Property – SBG Hotels USA

4. Establishing 2 new USA Hotel Funds in partnership with IHG

This year, we launched 2 new USA Hotel Funds focused on the Upscale and Luxury segments of the USA hotels market. Established to gain exposure to $USD assets and meet strong client demand, on objective is to develop a USD 1bn hotel portfolio over 3-5 years and further strengthen the Group’s partnership with IHG into the USA. Opportunities to invest into these Funds are available, please contact us for more information.

 

 

Launching the SBG Upscale Hotel Fund, USA with our first hotel investment in Washington DC

The new SBG Upscale Hotel Fund builds on the expertise and success of the SBG Hotel Group in Australia as it invests in existing hotels and refurbishes and rebrands them to Crowne Plaza Hotels. This is supporting IHG’s vision for Crowne Plaza to become the leading hotel brand in the US for business travellers through its US$200 Million Accelerate Program. The Fund’s initial USD$22M investment was made into the Washington DC-Greenbelt Marriott hotel in July 2018, which is currently being refurbished and converted to Crowne Plaza in early 2019.

 

 

Launching the Luxury Hotel Fund, USA with a primary hotel investment in Charlotte, North Carolina

The SBG Luxury Hotel Fund partners with IHG and Valor Hospitality to develop luxury Kimpton and InterContinental hotels in several locations in the USA. The Fund’s seed investment is the development of a new InterContinental Hotel in Charlotte, North Carolina, a 5 star, 283 room full-service hotel located above the historic Carolina Theatre.

 

Property – Residential

5. Everlea 116 Townhouse Residential Development in Keysborough, Melbourne

In May, we released Everlea, a residential development of 116 townhouses in Keysborough Melbourne.

In a year that has been challenging for many residential areas of Melbourne, Keysborough continues to perform strongly and is in the top 3 suburbs for price growth. Perfectly located 30km from the city in Melbourne’s south east and 8km from Port Phillip Bay, Keysborough has performed very well over recent years, and with our Everlea townhouse prices increasing by 2-4% since May 2018, this demonstrates that good properties are still performing well in the Melbourne market.

Everlea is situated next door to Haileybury College, one of Melbourne’stop private schools, and early 2019 will see the release of some of the best townhouses in the development. A small number have been reserved exclusively for current SBG and Atlas clients, please contact for more information.

 

 

Private Equity

6. AUD$16M Private Equity Investment into Inference Technologies Group’s global expansion

In July, the SBG Private Equity Fund, together with the Atlas Capital Group’s Emerging Companies Fund, partnered with leading US Venture Capital Fund, PeakSpan Capital Growth Partners, to invest AUD$16M into Inference Technologies Group, a leading provider of solutions designed to help organisations automate and facilitate interactions with their customers

 

Inference Technologies will use the capital to further expand into regional markets, strengthen their support of international partners in the US, UK, Europe and Asia, and continue product expansion and undertake a corporate restructure to become a US company.

7. SBG Capital’s Emerging Companies Fund exceeds the index by 10.3%

SBG Capital was appointed the manager for the Atlas Capital Emerging Companies Fund in December 2017. Since then, the gross performance of the Fund has exceeded the S&P/ASX Small Ordinaries Accum. Index by 10.3%, to the end of November 2018, improving the relative performance of the Fund.

 

 

Credit

8. (a) Launching bond products with US dollar investment opportunities

In a year which has seen the US Dollar perform strongly against most currencies, SBG launched a suite of (USA) Bond Funds. Based on client demand, the Fund offers clients an investment option with a fixed income return, denominated in $US dollars and secured against real property assets, including premium IHG branded hotels.

 

 

(b) Launching bond products with AUD dollar investment opportunities

SBG Property Opportunity Fund Ltd increased its existing debt facility to AUD $80m through the issue of 3 year and 5 year bonds. This facility, offered to investors, is Senior debt secured by 1st ranking charge over the assets of the company.

 

 

Special Bonus Point: Having a great team who work hard and are committed to creating value

The success of our business and the value we deliver to our clients is the result of the hard work of many on the SBG and Atlas teams.

From Investment Managers to Client Relations, to the Finance and Admin teams, our staff share a strong commitment to creating value for our investors. Our culture is about thinking differently, encouraging team members to use their experience to analyse opportunities from multiple perspectives and to create new ways of working and partnering with brands and people we trust. It is a culture we are proud of and what we believe underpins our success.

 

 

We would like to take this opportunity to thank our staff and investor clients for what we have collectively achieved in 2018 and we wish you a safe, happy and joyful season, as we look forward to 2019.

 

Robert Salter

CEO, SBG

SBG releases new USA Upscale Hotel Fund and plans for first hotel conversion in Washington DC

 

SBG has released a new Hotel Fund – the SBG (USA) Upscale Hotel Fund. Established to gain exposure to $USD assets and meet strong client demand, the objective is to develop a USD 1bn hotel portfolio over 3-5 years.

The new Fund builds on the expertise and success of the SBG Hotel Group in Australia and further strengthens the Group’s partnership with IHG.

The SBG (USA) Upscale HotelFund will invest in existing hotels across the USA and refurbish and rebrand them to Crowne Plaza Hotels, supporting long-term partner, InterContinental Hotel Group’s (IHG) vision for Crowne Plaza to become the leading hotel brand in the US for business travellers through its US$200 Million Accelerate Program.

 

 

The SBG (USA) Upscale Hotel Fund has already raised the initial USD$36.5M funding needed tosecure its first investment, acquiring the Washington DC-Greenbelt Marriott Hotel in July. The hotel will be refurbished and fully converted to Crowne Plaza by early 2019.

Managing Director of SBG Group, Mr. Paul Salter said,“The strategy for the new SBG (USA) Upscale Hotel Fund is to leverage IHG’s focus on improving the Crowne Plaza brand in the USA. As the biggest Crowne Plaza owner in Australia and a successful track record of Crowne Plaza refurbishments including the recent AUD$25 Million upgrade of Crowne Plaza Melbourne’s 402 guest rooms, it’s a clear and natural progression for the Group to build on this in the USA.”


IHG’s Crowne Plaza Brand & Accelerate Program:

 

 

The Crowne Plaza brand is very well regarded across Europe and Asia, where it is considered a 4.5 and 5-star offering, however its image and hotel quality has been inconsistent in the USA. Over two years, IHG will invest USD $200M through its Accelerate Program to raise both the quality of product and brand reputation in the US, and as part of this program, are committed to working collaboratively with SBG and its Upscale Fund.

 


Key Partners:

Investors in the SBG Upscale Fund will partner with a strong team, led by SBG, and including IHG and Valor Hospitality Partners, who together have a proven track record in the refurbishment, reinvigoration and operation of Crowne Plaza Hotels, both in the USA and Australia.


Crowne Plaza Washington DC-Greenbelt Conversion Plans:

 

 

The SBG (USA) Upscale Hotel Fund completed its first investment in late July, with the USD$22M acquisition of the 284 room Greenbelt Marriott Hotel, which will be renovated and repositioned as Crowne Plaza Greenbelt.

Strategically located within 13 miles from Washington DC and close to major Government agencies, the hotel benefits from the demand generated by the IRS, FDA, NASA, The Pentagon and the Goddard Space Flight Centre.

 

 

Guests of the hotel have easy access to a wide variety of leisure and entertainment activities including Washington DC’s famed National Mall to see the Smithsonian Museums, the newly opened MGM Grand Casino at National Harbor with their nine world-class restaurants, the NFL’s Washington Redskins’ home at FedEx Field in nearby Landover, Maryland; the NHL’s Washington Capitals at Capital One Arena in Downtown D.C. and the Tanger Outlets at National Harbor which offers over 160 brand-name and designer retail stores.

 

 

 

The hotel is also close walking distance from the Greenbelt Metro and is serviced by three Washington metro area airports – one national and two international.

 

The current Hotel has 10,000 square feet and 14 different rooms of meetings and event space and two food & beverage outlets, providing an ideal platform for refurbishments that will create a significant value uplift. These include an enhanced and consolidated food & beverage offering in the ground floor lobby area with bar, restaurant and function space,and a focussed Meetings, Incentives, Conferences & Exhibitions (MICE) offering with advanced Audio Visual facilities, targeting business travellers in the highly competitive Washington DC market.

 

The US$14.5 million renovation of the Hotel and conversion to Crowne Plaza Washington DC-Greenbelt is due to commence in early 2019. The hotel will remain fully operational.

If you are interested in finding out more about investing in SB&G’s (USA) Upscale Hotel Fund, please contact us.

SBG and IHG open first voco™ hotel globally on Australia’s Gold Coast

 

 

 

Gold Coast, Australia, 14 November 2018: SBG and IHG (InterContinental Hotels Group) have today opened the first voco™ hotel globally on the Gold Coast, just five months after the hotel acquisition (previously Watermark Hotel) was completed by SB&G, and the new voco™ upscale hotel brand was launched by IHG.

The Mayor of the Gold Coast, Tom Tate and CEO of Destination Gold Coast, Annaliese Battista were among the dignitaries that officially opened voco™ Gold Coast at a packed ribbon cutting ceremony at the hotel this morning.

Located on the shores of the Gold Coast, voco™ Gold Coast is now open for guests to soak up the sun, sand and sea in Australia’s beloved Surfers Paradise.

voco™, inspired by the meaning ‘to invite’ or to ‘come together’ in Latin, will combine the informality and charm of an individual hotel, with the quality and reassurance of a global and respected brand. The public spaces of voco™ Gold Coast emphasise this social element, fittingly named Social House Café, which collectively houses a bar and lounge within the venue, offering a space for everyone.

 

With 389 rooms, the property is situated in the heart of Australia’s iconic Surfers Paradise precinct and steps away from Queensland’s famous beaches. The hotel offers all the features that guests can expect from the upscale voco™ brand including two swimming pools, gym facilities, L’Aqua Day Spa, 800sqm of meeting space and expansive views of both the ocean and hinterland. Multiple dining options are also available in the hotel’s three unique restaurants – Waves, Clifford’s Grill & Lounge and Social House – all designed to offer vibrant social experiences for voco™ guests to enjoy.

voco™ Gold Coast also offers several exclusive features that sets it apart from existing hotels, starting with their onsite beehives, producing honey for various uses throughout the hotel. The strong sustainability focus also promises refillable dispensers for products such as soap, along with a high-end Aveda amenity and an initiative with Gold Coast City Council to ensure all kitchen waste is recycled.

 

The voco™ Gold Coast signing was announced by IHG and owners SBG in June 2018, coinciding with the global launch of the voco™ brand.

Paul Salter, SBG Managing Director, said: “We are proud to be the first owner of a voco™ branded hotel in the world and to have worked closely with IHG to bring this new brand and service culture to the Gold Coast, making the high-quality refurbishment a reality in only 5 months.”

Brenden van Blerk, voco™ Gold Coast General Manager, said: “As one of Australia’s all-time favourite holiday destinations, we are very excited to be introducing the voco™ brand across the much-loved Gold Coast. Quintessentially Australian, the Gold Coast offers travellers the ultimate getaway with warm weather, amazing beaches and several great ways to have fun. This perfectly aligns with the new voco™ hotel – a fun, spirited, upscale offering.”

Kenneth Macpherson, CEO EMEAA, IHG,said: “IHG launched the voco™ brand in June in Australia, we are so pleased to see the brand’s momentum continue here with the first opening in the iconic Gold Coast with long standing partner, SB&G Group. voco™ delivers a guest experience that stands out, with touches of charm and memorable, distinctive and dependable hallmarks.”

 

As the first owner of a voco™ branded hotel globally, SBG welcomes the value that the distinctive voco™ brand offers owners regarding the ability to drive higher returns through delivering a compelling guest experience and leveraging IHG’s powerful systems. This includes best-in-class revenue management and technology capabilities as well as IHG® Rewards Club, one of the world’s largest hotel loyalty programmes.

For further information, please contact:

Nancy De Losa | Head of Marketing
SBG

M: 0411 543 433
E: nancy.delosa@salterbrothers.com.au

SBG unveils Crowne Plaza Melbourne new-look guestrooms

SBG is proud to have unveiled phase 1 of its Crowne Plaza Melbourne hotel refurbishment program, with the stunning, $25 million transformation of its guestrooms, making it one of the city’s most enviable hotels for business and leisure travellers.

As part of the refurbishment, all 402 guestrooms have been completely transformed, with contemporary bathrooms, standalone showers with state-of-the-art showerheads, premium bedding, designer furnishings and striking artwork a feature. Connectivity throughout the entire hotel has also been upgraded.

The hotel’s City View rooms now boast spacious walk-in wardrobes with sleek workstations, while the hotel’s Luxury suites feature deep bathtubs, walk-in showers, plush bedding, new furniture and sweeping views of the Yarra River and Melbourne city skyline.

SBG Managing Director, Paul Salter said “our phase 1 upgrade represents an important milestone for this hotel investment, positioning it for increased returns and capitalising on its premium location and market opportunity. The property is absolute riverfront and ideally located close to Melbourne’s CBD, Convention Centre and Southbank entertainment and leisure precinct, making it highly appealing for business and leisure travellers.”

Area General Manager for InterContinental Hotel Group (IHG) for Melbourne and Canberra, David Mansfield, said the renovation is the first step in a new chapter for the hotel. “Few properties in Melbourne have a history as rich as Crowne Plaza Melbourne and the standard to which all of the hotel’s guestrooms have been refurbished is outstanding,” he said.

Describing the inspiration behind the new-look rooms, Tina Parkinson, Senior Development Manager for SBG, said, “Our intention was to create an experience that blends work and leisure while ensuring the design was functional and contemporary. Multiple workspaces enable casual and formal work areas, open ‘walk-in’ wardrobes enhance the leisure experience, and bright and inspiring accents complement the rooms’ neutral and calming tones. Artwork by Australian photographer Judith Martinez is a key design feature in all of the rooms and her ‘Layers of Melbourne’ digital collages have a great impact.”

Phase 2 of the hotel’s multi-million dollar refurbishment will commence in the second quarter of 2019 and will see all of the hotel’s public areas redesigned, including updates to the hotel’s conference and event facilities, a new restaurant and bar concept, and updates to the hotel pool, gymnasium and lobby.

For media information, contact

Nancy De Losa | Head of Marketing

Nancy.delosa@salterbrothers.com.au/ 0411 543 433

 

SBG & IHG sign Agreement for new Holiday Inn Express, Canberra

 

Paul Salter, Managing Director SBG last week joined with Kenneth Macpherson, CEO IHG in Hong Kong to sign the Hotel Management Agreement for SBG’s new Holiday Inn Express hotel, Canberra.

Proposed for development in 2019, the new midscale hotel offering with up to 250 guest rooms will be built on the same site as the existing SBG-owned Crowne Plaza Hotel, and will be owned by SBG and operated by IHG.

Paul commented that ‘the opportunity to bring a differentiated hotel offering to Canberra with the Holiday Inn Express is an exciting development for the Canberra business and leisure travel markets, and further strengthens the relationship between SBG and IHG across multiple brands and markets’.

 

Paul Salter, Managing Director, SBG joins with Kenneth Macpherson, CEO and Janice Gan, Head of Legal Counsel, IHG for signing in Hong Kong.

SBG Hotel Group announces new hotel development for Canberra, diversifying its existing offering and edging closer to its $1 billion target

 

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.

Media contact:

Tina Orr
Hatching Communications

E: tina@hchq.com.au
P: 0413 378 081

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.

SBG Private Equity and Atlas Capital Group lead AUD$16M (US$12M) capital raise for Inference Technologies Pty Ltd

 

MELBOURNE 19 July 2018: Melbourne-based global funds managers SBG’s Private Equity Fund and Atlas Capital Group (Emerging Companies Fund), have partnered with leading US Venture Capital Fund, PeakSpan Capital Growth Partners to invest AUD$16M (US$12M) in Inference Technologies Group in one of the largest Venture Capital deals completed in Australia this year. The Series-A Preference Shares investment deal was confirmed today.

The Australian founded Inference Technologies is a leading provider of next-generation intelligent interactive voice response (“IVR”) and intelligence virtual agent (“IVA”) solutions, products that are designed to help organizations automate and facilitate interactions with their customers. The capital will allow them to further expand into regional markets, strengthen their support of international partners in the US, UK, Europe and Asia, continue product expansion and undertake a corporate restructure to become a US company.

SBG Managing Director, Mr. Paul Salter said, “Our Group has been an investor in Inference for some years, helping underpin the company’s growth plan and raise the capital required to support its global expansion and business objectives. This deal signifies an important achievement for the company and we are delighted to have been able to work with a leading global VC investor in PeakSpan and support Inference Technologies in their international expansion.”

Atlas Capital Group has invested in the deal via its SIV (Significant Investor Visa) Emerging Companies Fund.

Inference Technologies Group CEO, Mr. Callan Schebella said, “The Series-A investment from PeakSpan and SBG will allow the company to execute on its global vision as well as providing the capital to expand into regional markets. SBG has been a long-time supporter of the company and their partnership has been instrumental in positioning the company as an emerging player in the US market. PeakSpan brings to the table considerable experience in our market segments coupled with a track record of taking Australian Technology companies global. Inference is delighted to have both PeakSpan and SBG participate in the financing round.”

PeakSpan Capital Co-Founder and Managing Partner, Mr. Phil Dur said, “PeakSpan looks to invest in highgrowth businesses that are bringing disruptive solutions to market with a highly defensible business model and value proposition. Inference has developed a virtual agent platform and growing portfolio of use cases that address a palpable need in the market to provide exceptional multi-channel customer experience at an affordable price point. The company is an emerging leader in a sector that we think has massive potential and we couldn’t be more thrilled to partner with this management team and stakeholder base.”

Media contact:
Tina Orr
Hatching Communications
E: tina@hchq.com.au
P: 0413 378 081

SB&G Deal contact:
Tineyi Matanda | Investment Manager
SBG
E: tineyi.matanda@sbggroup.com.au
P: +61 (0) 410 054 012

About SBG

SBG is a global specialist funds management business with a focus on Property, Private Equity, Credit and Immigration Investment. For more information about SBG and its Immigration Investment arm, Atlas Capital, visit salterbrothers.com.au and www.atlascapitalfm.com

SBG Hotel Group acquisition of Watermark Hotel & Spa Gold Coast complete with settlement announced today

 

MELBOURNE 19 June 2018: Managing Director of Melbourne-based property investment firm SBG Hotel Group, Mr. Paul Salter has today confirmed that settlement of the Watermark Hotel & Spa Gold Coast has occurred. The Group announced it would be acquiring the property from Japanese travel company, H.I.S. Co., Ltd. in March of this year. It is the first Queensland property to join the SBG Hotel Group portfolio which, prior to this latest acquisition, consisted of five hotels across Melbourne, Sydney and Canberra.

The settlement follows last week’s announcement that the hotel will be managed by long-standing SB&G partner, InterContinental Hotel Group (IHG) under a new, upscale hotel brand, vocoä. The Gold Coast property is the first signing of the new hotel brand globally and is expected to open under the voco flag in late 2018.

Mr. Salter said, “Today’s settlement moves SBG closer to our target of $1billion of assets and represents strong opportunities for our continued growth and diversification. With the acquisition now complete, we are looking forward to working with IHG to launch the voco brand in Australia.”

The 388-room hotel offers significant conferencing and food and beverage facilities, allowing the Group to tap into the local corporate market, as well as the growing leisure and tourism market that is attracted to the Gold Coast.

There will be no changes of employment for Watermark Hotel & Spa Gold Coast staff.

SBG Hotel Group also this week completed the on-sale of the 94-room Watermark Brisbane property to Prime Hotels, with all hotel staff transferring to the new owner.

SBG Hotel Group confirms Watermark Hotel & Spa Gold Coast will be managed by IHG under new upscale hotel brand, voco

 

MELBOURNE 12 June 2018: Melbourne-based property investment firm SBG Hotel Group has announced that Watermark Hotel & Spa Gold Coast, which is due to settle on or around 19 June 2018, will be managed by InterContinental Hotels Group (IHG) under its new, upscale hotel brand, voco. The Gold Coast hotel is the first signing of the voco brand globally, which was unveiled at an exclusive media event in London overnight.

Managing Director of SBG Hotel Group, Mr. PaulSalter said,“As a long-standing partner, we are excited to be working with IHG to launch its new global brand in Australia. As we expand into Queensland, we look forward to our continued growth with IHG, given the synergies with our existing portfolio of hotels across Sydney, Melbourne and Canberra, which we acquired in December 2015.”

The settlement of the property moves SBG Hotel Group closer to its stated target of $1 billion of assets and adds scale and geographic diversification to its Australian Hotels Portfolio.

Following completion of the Watermark acquisition, IHG will operate six SBG Hotel Group properties in Australia, including InterContinental Melbourne The Rialto, Crowne Plaza Melbourne, Crowne Plaza Coogee Beach, Crowne Plaza Canberra and Holiday Inn Potts Point – Sydney.

The 388-room hotel is due to transition to the voco flag in late 2018. There will be no changes of employment for Watermark Hotel & Spa Gold Coast staff.

IHG will initially roll out voco in IHG’s Europe, Middle East, Asia & Africa (EMEAA) region, with plans to take it to the Americas and Greater China regions over time.

Leanne Harwood, Managing Director – Australasia & Japan, IHG, commented, “We are thrilled that Watermark Gold Coast will be the first global signing for the voco brand, and even more so that it is with a great partner like SBG. We look forward to building on the success of this hotel, along with some additional voco flair to create ahotel with a bold, distinctive identity.”

 

To learn more about voco visit: www.vocohotels.com

and for more on SBG Hotel Group, visit www.sbghotelgroup.com.au

SBG Hotel Group expands portfolio by one third with Queensland hotels acquisition

 

SBG Hotel Group has today moved closer to its stated target of $1billion of assets with the acquisition of two Watermark branded hotels in Brisbane and the Gold Coast. The acquisition from Japanese travel company, HIS Co Ltd marks the first Queensland properties to join the SBG Hotel Group, adding scale and geographic diversification to its Australian Hotels Portfolio.

Managing Director of SBG Hotel Group, Mr. Paul Salter said, “The transaction represents a strong opportunity for growth given the synergies with our existing portfolio of hotels across Sydney, Melbourne and Canberra, acquired in December 2015.”

Commenting on the economics of the deal, Executive Director of SBG, Mr. Michael Gu added, “The properties are attractively priced on a per room basis, materially lower than replacement cost.”

The largest hotel in the Watermark portfolio is located on the Gold Coast with 388 guest rooms, significant conferencing and food and beverage facilities, allowing the Group to tap into the local corporate market, as well as the growing leisure and tourism market that is attracted to the Gold Coast. The Brisbane property features 94 guest rooms, conferencing and food and beverage facilities.

Immediately following settlement, the hotels will continue to operate under the Watermark brand with Mr. Salter confirming, “the Group anticipates that one of the global hotel brands will be selected for operation of one or both of the hotels moving forward.”

The acquisition is expected to complete before 30th June 2018.

www.sbghotelgroup.com.au