Largest Australian hotel deal in over two decades to give Mirvac’s hotels increased international competitiveness
Accor has purchased the hotel business of Mirvac for €195 million. The agreement includes the purchase of:
– Mirvac Hotels & Resorts, a management company of 48 hotels (inc. two owned hotels), representing 6,101 rooms, for €149 million
– A 21.9% stake in the Mirvac Wholesale Hotel Fund (MWHF), an investment vehicle with ownership of 7 of the hotels, for €46 million. A further stake in the MWHF will be bought by Accor’s partner Ascendas, the Singapore real estate developer. Together they will combine to purchase Mirvac’s 49.2% stake in MWHF.
The 48 hotels are located mainly in Australia, in key cities such as Sydney, Melbourne, Brisbane and Perth. Four of the hotels are located in New Zealand. Mirvac’s hotel brands include Quay West, Sea Temple, Sebel and Citigate.
The acquisition of Mirvac is fully in line with Accor’s ambitious development strategy announced last September, which includes a target of 40,000 room openings each year in 2012 and 2013, mostly in an asset-light capacity. This operation also demonstrates Accor’s ability to secure its leadership in mature markets, through selective acquisitions. With this transaction, the Group’s network in Australia and New Zealand will grow to over 240 hotels and 32,500 rooms, covering the spectrum of hotel segments and resulting in a strong presence in each.
“This agreement is an important step for Accor in Australia & New Zealand, 20 years after our debut in these countries,” said Michael Issenberg, Chief Operating Officer Accor Asia Pacific.
“The new partnership between Accor and Mirvac Hotels will provide great opportunities for both groups and will help shape the hospitality scene in Australia and New Zealand for many decades to come.
“Accor’s investment in the Mirvac hotels will provide the resources to deal with the next phase of evolution in the hotel industry. This includes getting greater access to the most important emerging markets – such as China and India, where Accor is already an industry leader – as well maximising the potential of distribution, branding, loyalty, purchasing and employee development.”
Completion of the deal should occur during the first half of 2012, after regulatory approvals have been finalised.