Salter Brothers acquires $620m Travelodge hotel portfolio under new joint venture
Salter Brothers has today confirmed the acquisition of the Travelodge portfolio, owned by Mirvac and NRMA.
The portfolio consists of 11 hotels worth AUD$620m and has been purchased by Salter Brothers under a new Australian Hospitality Sector joint venture with Singaporean sovereign wealth fund, GIC and leading private markets investment firm, Partners Group (acting on behalf of its clients). The transaction marks the first acquisition of the joint venture, creating a platform of scale and geographic diversification across Australia.
Managing Director of Salter Brothers, Paul Salter said, “The transaction enables us to capitalize on the evolving hospitality sector in Australia, positioning for growth and adding value to the portfolio via targeted capital expenditure and rebranding where appropriate.”
The portfolio of 2032 midscale hotel rooms located across Sydney, Melbourne, Brisbane, Perth and Newcastle currently operates under the Travelodge brand, with Salter Brothers anticipating that following an operator selection process, the hotels will operate under a new brand post settlement.
The portfolio will benefit from the already proven Salter Brothers hotel asset management capability, with the Group planning to reposition the assets.
Niall McCarthy, Director of Funds Management at Salter Brothers said that ‘this significant joint venture demonstrates confidence in the Australian hospitality sector and confidence in our experienced management team with proven deal sourcing capability, active hotel asset management skills and our value-add capabilities, which will all be actively deployed across this portfolio. Following this acquisition, we are well placed to progress towards acquiring further assets in this sector.”
The acquisition is expected to complete by the end of 2021.
About Salter Brothers
Salter Brothers is an Australian-owned global funds management business with a focus on hotels, property, private equity and credit, with group assets under management of almost US$2 billion. The company’s hotel group was formed in December 2015 and has established a track record of acquiring, developing and managing high quality hotel assets across Australia and the USA, with its associated portfolio entities currently comprising over 2,400 hotel rooms across 8 hotels, with asset value exceeding US$1 billion.
Salter Brothers Hospitality Real Estate Joint Venture was formed in 2021 to capitalize on the disruption in the hospitality sector in Australia. The joint venture is an investment vehicle owned by Salter Brothers, GIC and Partners Group. It’s focus is on acquiring existing hospitality assets in Australian primary markets.
About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested over USD 150 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With over USD 119 billion in assets under management as of 30 June 2021, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.
About GIC
GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, we take a long-term, disciplined approach to investing, and are uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. Our long-term approach, multi-asset capabilities, and global connectivity enable us to be a partner of choice, by adding meaningful value to our partnerships and investments through the sharing of our networks and business expertise. Headquartered in Singapore, we have a global talent force of over 1,800 people in 10 key financial cities and have investments in over 40 countries.
For more information, please visit gic.com.sg or follow us on LinkedIn.