GIC paying Mirvac, NRMA c$600m for 11 Travelodge hotels, brand

GIC may soon own Travelodge Hotel Melbourne Southbank next door to the 92 level Eureka Tower.

Singaporean sovereign wealth fund GIC, advised by Salter Brothers, is paying more than $600 million for 11 Travelodge inns including one beside Melbourne’s 92 storey Eureka Tower.

Marketed as the largest ever Australian hotel portfolio and the opportunity to gain scale, brand ownership and geographic diversification in one deal, it contains 2032 suites and carried price hopes of c$550m when it hit the market three months ago.

Leased to Toga Far East Hotels (TFE Hotels) consortium Value Lodging Pty Ltd – they came with optional vacant possession.

The offering included the Travelodge Hotels brand in Australia and New Zealand (which TFE Hotels has the licence to use).

Vendor Tucker Box Hotel Group, controlled equally by Mirvac and NRMA, was represented by McVay Real Estate and Credit Suisse.

Six parties were shortlisted, according to The Australian, including US private equity group KSL Capital Partners.

Just over 80 per cent of the rooms are located in the country’s two biggest capitals (story continues below).

Half the income is derived from Sydney CBD guesthouses.

The portfolio comprises:

  • Travelodge Hotel Sydney Martin Place (pictured, top)
  • Travelodge Hotel Sydney
  • Travelodge Hotel Sydney Wynyard
  • Travelodge Hotel Manly Warringah Sydney
  • Travelodge Hotel Macquarie North Ryde Sydney
  • Travelodge Hotel Blacktown Sydney
  • Travelodge Hotel Bankstown Sydney
  • Travelodge Hotel Newcastle
  • Travelodge Hotel Garden City Brisbane
  • Travelodge Hotel Melbourne Southbank
  • Travelodge Hotel Perth

Melbourne based Salter Brothers owns five InterContinental Group backed inns – worth a total of c$500m.

Globally the value of its hospitality assets is speculated to be more than $1 billion.

Last year it outlaid $150m on the NEXT Hotel Brisbane and a neighbouring shopping centre.

Two weeks ago we reported Iris Capital was paying AccorInvest c$180m for 17 guesthouses, the majority of the distressed portfolio which iProsperity agreed to buy last year.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of