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Highlights
- Salter Brothers inks Australia’s largest hotel management portfolio agreement deal with the world leading hospitality group
- As per the deal, Salter Brothers’ portfolio of hotels, acquired as part of the recent Travelodge acquisition, will be joining Accor in FY23.
- This will be Australia’s first innovative ESG linked management agreement.
Global funds management business Salter Brothers has announced that its portfolio of hotels, acquired as part of the recent Travelodge acquisition, will be joining the world leading hospitality group Accor at the start of the 2023 financial year, making this one of Australia’s largest hotel management portfolio agreement deals for over a decade.
Salter Brothers is an Australian-owned business with focus on hotels, property, private equity and credit, with group AUM of almost AU$2 billion. The company’s hotel platform was formed over six years ago in December 2015 and has established a track record of acquiring, developing and managing high quality hotel assets across Australia and the USA. Its associated portfolio entities currently comprising over 2,400 hotel rooms across eight hotels, with asset value exceeding AU$1 billion.
What does the agreement propose?
The management agreement, which includes an industry-leading link to ESG outcomes, will see these hotels (2000+ rooms) rebranded to ibis Styles, Mercure and Novotel hotels when they join the 340+ Accor network of hotels, apartments and resorts in Australia.
Image Source: © 2022 Kalkine Media ®
An insight into Accor: The global hotel giant
From luxury to economy, Accor has more than 340 hotels, resorts, and apartments to choose from in Australia, including international brands such as MGallery, Sofitel, Art Series, Pullman, Mövenpick, Grand Mercure, Swissôtel, Peppers, Mantra, The Sebel, Novotel, Mercure, BreakFre, Tribe, ibis, ibis Styles and ibis Budget.
The deal is Accor’s largest integration since its AU$1.2 billion acquisition of Mantra Group in 2018, which brought the Mantra, Peppers, Art Series, and BreakFree brands under Accor. Nine of the properties will be added to Mercure hotels, expanding its network from 44 properties in Australia to 53. This will make Mercure the largest and fastest growing global mid-scale brand in Australia with over fifty hotels.
Accor Pacific Chief Executive Officer Sarah Derry said that by partnering with Accor, Salter Brothers would have access to the company’s powerful distribution engine. She added that Salter Brothers will also be able to realise the benefits of strong customer demand through Accor’s award-winning lifestyle loyalty program, ALL – Accor Live Limitless, along with significant extended benefits created by Accor’s major strategic partnerships with Accor Stadium and Qantas.
“We are delighted to be adding these great hotels to our growing portfolio; it brings new opportunities for our people, partners, and guests. Expanding our footprint with these incredible properties will bring more choice for our customers and realise significant commercial benefits for Salter Brothers. Tourism is critical to the economic growth of our region and future job creation,” Ms. Derry said.
Image Source: © 2022 Kalkine Media ®
MUST WATCH: Kalkine Conversations with Managing Director of Salter Brothers, Mr. Paul Salter
