Melbourne-based SB&G Hotel Group is $100 million closer to their goal of holding $1 billion worth of assets – acquiring two Watermark branded hotels in Brisbane and the Gold Coast.
The hotels were acquired from Japanese travel company HIS International, after a $110 million deal fell through in late 2017.
As the largest hotel in the Watermark portfolio, the Gold Coast asset comprises 388 guest rooms, food and beverage facilities and significant conferencing which provides an entry into the local corporate market on top of the Gold Coast’s growing leisure and tourism market.
The 94-room Brisbane property is located in the CBD on Wickham Terrace.
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“The transaction represents a strong opportunity for growth given the synergies with our existing portfolio of hotels across Sydney, Melbourne and Canberra, acquired in December 2015,” SB&G Hotel Group managing director Paul Salter said.
The hotels will continue to operate under the Watermark brand.
“The Group anticipates that one of the global hotel brands will be selected for operation of one or both of the hotels moving forward,” Salter said.
One of the world's largest travel companies, HIS owns 13 hotels under the Watermark brand including hotels in Japan and Indonesia. HIS acquired and developed the Queensland sites in the ’90s.
Matthew Cheng of M2 Property Agency brokered the sale on behalf of HIS.
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They were the first Queensland properties to join the SB&G Hotel Group’s portfolio, which has intentions of growing to $1 billion in holdings.
The acquisition is expected to complete before 30 June 2018.