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Salter Brothers (ASX:SB2) is preparing to move ahead with plans to bring its substantial hotel portfolio to the Australian Securities Exchange (ASX). The total value of these assets is projected to reach approximately A$2 billion, according to recent reports. The firm has been steadily expanding both within Australia and internationally, establishing itself as a significant player in the country's hospitality sector.
According to data from CBRE, Salter Brothers is second only to billionaire Harry Triguboff in terms of hotel ownership in Australia. While Triguboff holds the top spot with 6,204 rooms, Salter Brothers' portfolio consists of 4,921 rooms across several prominent properties. Some of the most notable hotels under its management include The Rialto InterContinental in Melbourne, Sydney's Holiday Inn Potts Point, and the Crowne Plaza Coogee. The firm currently oversees approximately six property funds, with its Australian hotel fund playing a central role in its business strategy.
The decision to pursue an ASX listing appears to be part of Salter Brothers' broader efforts to enhance liquidity and broaden access to capital for its hotel portfolio. This step would provide existing stakeholders with the option to reduce or exit their holdings in the portfolio, offering greater flexibility for those involved. The move towards a public offering also signals potential future listings for other assets within the firm's broader portfolio, or possibly even the parent company itself.
Salter Brothers is reportedly handling the listing process internally, relying on its own equity capital markets advisory team to manage the initial public offering (IPO). However, it remains unclear whether external financial institutions or investment banks will be involved in the listing process at this stage. While the precise timing and amount of capital to be raised have yet to be confirmed, the listing is anticipated to take place in the short-to-medium term.
By listing its hotel portfolio on the ASX, Salter Brothers would further solidify its position in the Australian market. The firm has built a reputation for managing high-profile assets, and this move would likely enable it to expand its operations and increase its visibility in the financial markets. The listing would also provide Salter Brothers with an additional avenue for raising capital, potentially facilitating further growth and acquisitions in the hotel sector.
This shift reflects a broader trend of major players in the hospitality industry seeking public listings to tap into new sources of funding and enhance liquidity for existing shareholders. As the hospitality sector continues to evolve and face new challenges, access to public markets could provide a crucial advantage for companies like Salter Brothers. With its strong portfolio of high-value assets and a clear strategy for growth, the firm's entry into the ASX would be a significant development in the Australian hotel market.
While details about the timing and scale of the listing are still emerging, Salter Brothers' decision to go public aligns with its ongoing expansion efforts and commitment to maintaining a strong presence in both domestic and international markets. As the company continues to grow its hotel portfolio, this move could offer a glimpse into its long-term strategy and plans for future development within the real estate and hospitality sectors.
