Intercontinental Hotels Group (IHG) invests in Pro-invest Group’s Holiday Inn Express Portfolio as a way of tackling the growing demand in Australia’s accommodation market.
InterContinental Hotels Group (IHG) have recently invested into the Australian Hospitality Opportunity Fund (AHO) of private equity and real estate investment firm, Pro-invest Group. Under the A$150 million fund, Pro-invest Group is currently developing a portfolio of up to 15 Holiday Inn Express hotels across Australia.
“Australia is an important market for us and we are committed to growing our brands here,” Jan Smits, Chief Executive Officer for IHG in Asia, the Middle East and Africa, said.
Pro-invest Group currently has two hotels in the pipeline. The Holiday Inn Express Sydney, in Macquarie Park is scheduled to open next year. Holiday Inn Express Brisbane, Spring Hill will open early 2016. Both hotels have received the support of local authorities with Development Approvals received and it is expected that contractors will commence on-site later this month, in both locations.
“We are very excited to be launching Holiday Inn Express, one of the fastest growing hotel brands in the industry, with the Pro-Invest Group in Sydney next year,” Smits said.
“With their reputation as a hotel developer and operator, and a strong management team who is well acquainted with IHG, we are confident our partnership with Pro-Invest Group will establish Holiday Inn Express as a preferred brand in Australia.”
Pro-invest Group is also in discussion with a number of other institutions interested in investing in the Australian Hospitality Opportunity fund.
“Australia’s accommodation market is in need of new hotel supply operated under well-established international brands, particularly in the limited service segment,” Ronald Barrott, Chief Executive Officer of Pro-invest Group, said.
“Our hotels will cater to the growing demand for hotel accommodation in Australia, offering a great guest experience to smart, savvy travellers regardless of whether they are visiting for business or leisure,” Barrott said.
Pro-invest Group is currently in advanced negotiations on another five sites and is actively seeking additional sites to develop Holiday Inn Express hotels. It expects to announce further acquisitions by the end of 2014.
“Despite the challenges of developing hotels in the current market, the development of our Holiday Inn Express portfolio is well underway and we see plenty of opportunity for our initial portfolio of Holiday Inn Express hotels to grow significantly in the years to come,” Barrott said.