AUS
NZ
UK
CA
USA
IND
Highlights
- Salter Brothers invests over A$1 billion upgrading hotel portfolio.
- Premium rebranding to InterContinental and Regent hotels underway.
- New hospitality REIT planned within 18 months.
Melbourne-based investment firm Salter Brothers is making a major move to elevate its hotel portfolio with an investment exceeding A$1 billion, ahead of launching a dedicated hospitality real estate investment trust (REIT). The firm is transitioning its properties from the Crowne Plaza brand to luxury labels InterContinental and Regent, marking a significant upgrade in the premium hotel segment.
This strategic shift involves six key hotel assets currently managed by IHG Hotels & Resorts (ASX:IHG), spread across prime locations including Melbourne, Sydney, Canberra, and the Gold Coast. Salter Brothers aims to incorporate these properties into the upcoming hospitality REIT, expected to debut in approximately 18 months as part of a broader growth strategy.
Several notable rebrands will occur as part of this initiative. The Crowne Plaza Melbourne and Crowne Plaza Sydney Coogee Beach are set to be relaunched as InterContinental hotels, while the prestigious InterContinental Melbourne the Rialto will be converted into the Regent Melbourne. This change heralds the return of the Regent Hotels & Resorts brand to Australia for the first time in 28 years. Alongside these, new developments are planned including a Hotel Indigo and an expanded voco hotel on the Gold Coast.
The move reflects confidence in the luxury and lifestyle hotel market despite some recent challenges. For example, Melbourne's hotel market experienced a 3.3% decline in rate growth for FY24. Still, Salter Brothers remains optimistic, pointing to Melbourne’s strong events calendar and status as a major sporting capital that supports ongoing resilience.
The redeveloped Regent Melbourne is projected to open by 2030, featuring a new tower replacing the non-heritage section of the current InterContinental hotel. The Regent brand was chosen for its global reputation and alignment with the firm’s vision for a six-star luxury experience, complete with exceptional culinary and wellness offerings.
This investment and rebranding strategy comes at a time when many investors seek quality exposure in the hospitality space within the ASX200. Hospitality-focused assets with premium branding stand to attract growing interest, particularly among those looking for steady income streams often associated with "ASX dividend stocks."
The Crowne Plaza Sydney Coogee Beach’s transformation to InterContinental Sydney Coogee Beach is expected to complete by late 2025, with additional Canberra developments featuring the InterContinental Canberra and Hotel Indigo Canberra under construction. The voco Gold Coast will also undergo refurbishment and expansion.
IHG Hotels & Resorts currently operates 77 hotels across Australasia under multiple brands, underscoring the strategic importance of these locations for long-term value creation.
This comprehensive upgrade positions Salter Brothers’ portfolio to benefit from a more premium market presence, enhancing appeal to both global travelers and investors watching the evolving hospitality sector within the ASX200.
