Outrigger Hotel & Resorts is on the trail for new assets after settling the sale of the hotel management rights to 13 resorts to MFS.
The Hawaii based company’s senior vice president of operations Dave Lawrence the hotel operator plans to reinvest funds generated from the sale back into Australia/New Zealand and start up a new chain of resorts and hotel-style accommodation throughout Australia, New Zealand and the Asia Pacific.
“The proceeds of the sale will be used to acquire other assets in and around Australia, and the development market is showing strong signs of interest based on our track record as a pioneer in the international branding of the management rights business, at a time when the sector was generally run by ‘mum and dad’ operators.
“We intend to use the sale as a lever to re-enter the Australian short stay accommodation market as soon as practical. In fact the sale has been an extremely positive business move for us from an equity perspective, as it allows us to look at larger joint venture partnerships with industry partners that we have formed strong relationships with over the years, and will open the door to new relationships,” he added.
Lawrence said the company is close to announcing agreements in the South East Asian tourism centres of Koh Samui and Phuket and expect to announce a second property in Bali.
In Australia, he said the company is looking to gain a stronger foothold in the tourism and business traveller sector.
“We enjoy working in the Australian and New Zealand markets and believe it holds significant room for growth,” he concluded.
Australian Property Journal
