SB&G 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 SB&G Hotel Group, adding scale and geographic diversification to its Australian Hotels Portfolio.
Managing Director of SB&G 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 SB&G Group, 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.