Home' Hotel Management : HM FEB 2017 Contents InterContinental Hotels Group (IHG) and Pointcorp have signed a
management agreement for a new build Hotel Indigo to be located in
Brisbane’s Fortitude Valley.
The 140-room hotel on 458 Brunswick Street is the first Hotel Indigo signing
for Australasia and is due to open in 2020.
Hotel Indigo is IHG’s lifestyle boutique hotel offering and the company says
the property will bring to life the unique vibe of the Valley – home to the city’s
cultural, creative, music, fashion and gastronomy scene.
IHG’s Chief Operating Officer for Australasia and Japan, Karin Sheppard,
said: “Since late 2014, we have worked tirelessly to find the right partners and
locations for the launch of the Hotel Indigo brand in Australasia.
“We could not be more thrilled to have secured this ideal site for our first
Hotel Indigo signing, and to be developing it in partnership with Pointcorp who
are well known for their recently completed high end, quality developments
in Brisbane including the ‘The Highgate’ and luxuriously-appointed riverfront
residential property ‘Vida’.
“ We expect Hotel Indigo Brisbane Fortitude Valley to be the leading
lifestyle boutique hotel in Brisbane, bringning a new and vibrant experience to
“Guests staying at Hotel Indigo Brisbane Fortitude Valley will eat, drink, dance,
listen, shop, admire and experience everything that the Valley has to offer. It’s a
neighbourhood that’s historical yet shiny and new; traditional but experimental.
“Hotel Indigo will bring to life the spirit of this neighbourhood, and celebrate
its diverse community,” she said.
Chris Vitale, Director, Pointcorp said: “We have a deep understanding of the
Brisbane market and this will be something entirely new and exciting – both for
us, and for the guests we will welcome in a few years’ time.
“Situated in the heart of Brunswick Street, visitors to Hotel Indigo Brisbane
Fortitude Valley will have the best of the Valley on their doorstep: just a short stroll
to a multitude of dining and entertainment options, as well as the many varied
festivals and events which take place in the neighbourhood throughout the year.
“Each Hotel Indigo property brings to life its local neighbourhood in its very
being, and we look forward to working with IHG to capture the unique essence
of the Valley in the design of the hotel,” he said.
Hotel Indigo Brisbane Fortitude Valley will be part of a mixed-use
development which will include residences, commercial office and retail, and it
is expected to be the first development of its kind in the area, creating a new
epicentre for The Valley.
AccorHotels has successfully reached
agreement with a wholly-owned subsidiary
of the Abu Dhabi Investment Authority
(ADIA) to restructure a portfolio of 31
hotels (4,097 rooms) in Australia.
The agreement involves a portfolio
which was purchased by the ADIA
subsidiary in 2013 and operated by
Under the restructure of the portfolio
of 31 hotels, AccorHotels will convert 15
triple-net leases into 50 year management
agreements and extend the management
term of one hotel also to 50 years (total 16
hotels) and AccorHotels’ HotelInvest arm
will acquire the real estate of the remaining 15 ibis and ibis Budget branded
properties for AUD$200 million (€137 million).
“This deal is in line with our stated strategy to optimise cash flow generation,
reduce earnings volatility and restructure lease contracts into owned and
managed hotels,” said John Ozinga, COO of AccorHotels HotelInvest.
“The acquisition of the economy hotels
in key locations is a signal of our continued
focus on supporting the Group’s growth
strategy by holding a selective portfolio of
profitable hotel property assets,” he said.
The hotels are located in prime
locations including Sydney’s Darling
Harbour, Sydney Olympic Park and in
Canberra, Australia’s Capital City.
The portfolio is also spread across city
and regional locations in New South Wales,
Victoria, Northern Territory, Western
Australia and Queensland and encompasses
the Pullman, Novotel, Mercure, ibis, ibis
Styles and ibis Budget brands.
The acquisition will be accretive to AccorHotels’ EBIT in 2017 and will
further strengthen its market leadership position in Australia by securing
tenure on key assets.
Completion of the acquisitions is subject to the usual conditions for this
type of transaction, as well as regulatory approvals.
ADIA DEAL IN AUSTRALIA
Accor’s Sydney Olympic Park Hotels
IHG’s Indigo set for Australian debut in Brisbane
An artist’s impression of Hotel
Indigo Brisbane Fortitude Valley
12 HM The Business of Accommodation
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