Stockland is seeking offers to purchase its hotel management business, which operates under the Saville Hotel Group brand.
The Saville Hotel Group currently manages 11 apartment style hotels under lease agreements and management contracts with various third party owners, including Saville 2 Bond Street, Sydney; Saville South Bank, Brisbane; Saville Park Suites, Chatswood; Saville Park Suites, Canberra; Saville on Russell, Melbourne; Saville Park Suites, Melbourne; Saville City Suites, East Melbourne; Saville City Suites, Adelaide; Saville Park Suites, Perth; Saville Park Suites, Darwin and Directors’ Studios, Adelaide.
Stockland’s managing director Matthew Quinn said the hotel business had grown to a position of sustainable profitability under excellent management, and it was now an appropriate time to sell the operation, especially with strong demand in the market for hotel acquisitions.
Stockland has a diverse portfolio which includes over $9 billion of commercial, industrial, office park and retail assets and residential development projects.
“The Saville business is performing very well, but it represents a small component of Stockland’s overall group EBIT, less than one per cent, and is not a core focus for our business in the long term.
Quinn said he expects the Saville Hotel Group will attract significant interest from potential buyers from Australia and overseas.
“Saville is recognised as a market leader in apartment-style hotel accommodation, attracting domestic and international corporate and leisure travel guests.
“Saville Hotel Group CEO Greg Sear and his management team have spent the last five years restructuring and improving the group to build a highly profitable business. The business has a strong brand, a consistent track record and has demonstrated continued improvements in average room rates and occupancy levels,” Quinn said.
Stockland has appointed Grant Samuel Corporate Finance to manage the Saville Hotel Group sale process.
By Kathryn O’Meara
