Monday, November 20, 2017

Deal of the year short list nominees announced

Short list candidates for the 2017 HotelsWorld Deal of the Year awards were announced today in Sydney by industry consultants, HTL Capital Advisers.

Awards are given each year at HotelsWorld for the best deals, based on votes cast by an elite group of industry professionals, in three deal categories:

  • Under $50m
  • $50m to $100m; and
  • Over $100m

Explaining the basis for the awards, HTL Capital Advisers CEO Mr John Smith noted “deals are primarily assessed from the viewpoint of the purchaser rather than the seller, but market conditions in Australia continue to be so positive for sellers, that most successful transactions are inevitably resulting in “win-win” outcomes”. The 2017 winners will be announced on 27 July at Hotels Investment World, which is one of four consecutive industry events for hotel leaders that collectively comprise HotelsWorld 2017. The events are the leading conferences for industry CEO’s and other senior executives within hotel owners, investors, operators, lenders and professional advisers. More than 500 CEO’s and other key decision makers are expected to attend HotelsWorld 2017 and will be addressed by over 125 local, regional and global industry leaders and experts. Almost 50 hotel transactions with a transaction value of over $3billion that were undertaken from July 2016 to June 2017 were initially nominated for consideration in the 2017 awards. These were reduced to three short list candidates for each of the two lower price categories, and seven short list candidates for the over $100m category. The short list nominees in each 2017 Deal of the Year category are: Under $50m Deals

  • The New Incholm Hotel & Suites – purchaser Ovolo Hotels
  • Rydges Esplanade Cairns – purchaser Mulpha International
  • Management Rights in FV By Peppers – purchaser Mantra Group

From $50m to $100m Deals

  • Quest NewQuay Docklands – purchaser Ascott & Qatar Investment Authority
  • Novotel Cairns Oasis Resort – purchaser Shakespeare Property Group
  • Novotel Glen Waverley – purchaser iProsperity

Over $100m Deals

  • Ribbon Sydney – purchaser Greaton
  • Novotel on Collins – purchaser Frasers Hospitality Trust
  • Travelodge Docklands – purchaser Sing Holdings
  • Portfolio of 15 Accor Ibis Hotels – purchaser HotelInvest (Accor)
  • InterContinental Sydney Double Bay – purchaser Zobon Real Estate and Shanghai United Real Estate
  • W Melbourne – purchaser Daisho
  • Hilton Melbourne South Wharf – purchaser UOL Group

“Traditionally, buyers of Australian hotels in the sub $50m category have predominantly comprised local investors, whilst in the over $100m deal category foreign buyers have predominated” said Mr Smith. “However, foreigner buyer demand is now being seen in all deal categories, which is evident in the short list nominees for 2017” he added.

Whilst the volume of deals in 2017 involving existing hotels has not matched recent record breaking levels, the volume of deals relating to new hotels within mixed use developments has increased markedly and has supplemented total sale volumes. The fact that several of these deals are also high value transactions is also supporting total sales values. Overall, according to Mr Smith “It’s been another amazing year for hotel transactions in a market that continues to surprise and inspire confidence amongst global as well as local investors”. He added “whilst as always there are potential headwinds on several fronts, generally the outlook ahead remains positive in terms of both operating and investment performance.”

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