iProsperity Buys AccorInvest’s 23 Hotel Portfolio


European hotel investor AccorInvest’s Australian hotel portfolio has been snapped up by iProsperity Group for more than $250 million.

The 23-hotel portfolio was listed in July 2018 by the real estate investment and development arm of the French hotel giant, and comprises 1,797 rooms across 17 real estate assets and 1,249 rooms over six lease interests.

JLL’s Craig Collins and Peter Harper brokered the sale of the portfolio.

iPG, a Hong Kong-backed funds investment group for high-net-worth investors, has further expanded its hotels and hospitality arm in Australia, honing its focus on what it says is an undersupplied Sydney market.

iProsperity was founded by chief executive Michael Gu. The group declined to comment on its acquisition of the nearly 3000-key AccorInvest portfolio.

▲ Fifteen of the Ibis hotels were initially acquired by Accor from the Abu Dhabi Investment Authority in a deal worth $200 million.
▲ Fifteen of the Ibis hotels were initially acquired by Accor from the Abu Dhabi Investment Authority in a deal worth $200 million.

iPG is an active player in Australia's hotel market. In July, the group offloaded the 200-key Novotel Melbourne hotel and adjoining Century City Walk shopping centre in Melbourne’s south-east and sold the Sydney Park Regis Hotel to the Yeh Group for $54.18 million late last year.

Meanwhile, its 333 Kent Street Sydney asset, with approval for a luxury hotel and residential tower, is currently on the market. iPG bought the asset on behalf of a group of Chinese investors for the symbolic price of $88.88 million in 2016.

The AccorInvest portfolio is made up of hotels across Sydney, Melbourne, Brisbane, Canberra, Perth and regional areas, with 17 of the assets either Ibis or Ibis-budget branded.

Some of the larger real estate assets in the portfolio include the 200-key Ibis Sydney airport and the 156-key Ibis Budget Sydney Olympic Park.

Other movement for the group include the acquisition of Brookfield’s 419-room Pullman on the Park hotel in Melbourne and the purchase of the Iririki Island hotel resort in Vanuatu.

While the Australian hotel investment market continues to be dominated by overseas capital, local investors ramped up their interest in 2019, more than tripling their level of capital invested in hotels.

According to forecasts by JLL, the value of major hotel sales is expected to reach $1.5 billion in 2019—well below long term averages.

“We are forecasting that hotel transaction volumes in Australia will reach $1.5 billion by the end of this year, with $550 million recorded in the first six months and second half activity already sitting at an estimated $750 million,” Collins said.

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