Australia has seen the largest hotel merger and acquisition of the year as Prince Hotels, a subsidiary of listed conglomerate Seibu Holdings, acquired 100% of Australian-based Staywell Hospitality Group.
The transaction value was calculated at approximately $50 million and added 30 hotels, including 12 in Australia to Prince Hotels' portfolio, with significant further international growth to come.
Savills Australia Managing Director of Hotels Michael Simpson and Director of Hotels Vasso Zographou led the transaction team, supported by Sheriden Bacon and Tom Shadbolt, with Tokyo-based Prince Hotels which owns and operates 49 hotels – 42 of them in Japan under The Prince, Grand Prince Hotel and Prince Hotel brands.
Mr Zographou said Prince Hotels Inc was particularly interested in the fact that Staywell had hotel operations spanning seven countries, which proved an enticing opportunity.
"The current phase of Staywell’s evolution had reached a stage where further capital will assist in funding future expansion and growth," he said.
Mr Simpson said the transaction was a "great example of Australian entrepreneurialism creating a highly attractive global management platform."“The acquisition of the platform enables Prince Hotels Inc. to fast track its global growth through immediate presence in a range of international markets,” he said.
The Staywell Hospitality Group operates hotels in Sydney, Melbourne, Brisbane, Townsville, the Hunter Valley and other Australian locations under the Park Regis and Leisure Inn brands. It also operates a number of properties internationally in Singapore, Indonesia, India, Dubai and Birmingham and will continue with its asset light approach to hotel management as part of the new agreement with Prince and Seibu.
Prince Hotels Inc is a subsidiary of Japanese Investment giant Seibu Holdings Inc.