OAKS Hotels & Resorts has settled on the sale of its Management Letting Rights for four properties in north Queensland and Brisbane to the Kusido Hospitality Group.
Oaks has received $12.7 million from the sale.
Chief executive Brett Pointon said the sale was in line with the group’s previously flagged strategy of divesting a select number of smaller and regional properties to enable it to target higher returns available from newer, larger properties.
Pointon said that in line with its strategy, Oaks had signed unconditional contracts to manage 10 new properties that are scheduled to come on line progressively through to December 2008 and add over 1,000 rooms to our existing inventory after opening.
These new properties represent an investment of $37.5 million in MLR’s and associated freehold.
Australian Property Journal
