M&L Hospitality has sold the Travelodge Docklands in Melbourne for $107 million to Singaporean developer Sing Holdings.
The acquisition of the 14-storey limited-service hotel with 291 guestrooms is the first hospitality acquisition for Sing Holdings - who paid a $5.35 million deposit for the acquisition - which is primarily a developer of apartments in Singapore.
According to a statament released by the company, the Travelodge acquisition will be funded by group's internal resources and bank borrowings.
The acquisition not expected to have material impact on consolidated net tangible assets per share and consolidated earnings per share according to a statement.
Travelodge Docklands lobby. Source: Travelodge.com.au
The Hotel is currently leased long term to Medina Property Services, part of the TFE Hotels group, one of Australia’s largest hotel companies which operates hotels across Australia, New Zealand and Europe.
On completion of the acquisition, the existing hotel lease agreement with the Lessee will continue to be in effect and all rights and obligations under the Hotel Lease will be transferred to the new legal owner of the Hotel (i.e. Company or its nominee). The hotel will continue to operate under the Travelodge brand after the Acquisition.
Travelodge Docklands is a freehold, 14-storey hotel located at 66 Aurora Lane, Docklands, Melbourne. It was opened in February 2010 and operates as a limited service hotel. The hotel comprises 291 guestrooms, lobby, a food and beverage outlet, meeting rooms, a business centre, guest laundry and other amenities.
The hotel is in the immediate vicinity of the Southern Cross Railway Station. It is within minutes’ walk to the Etihad Stadium, the Melbourne Convention & Exhibition Centre and Crown Casino. It is near to many corporate offices such as those of Medibank, Commonwealth Bank of Australia, Marsh Mercer, KPMG and the Australian Taxation Office.