Savills has transacted Australia’s largest hotel merger and acquisition of the year with Prince Hotels Inc (a subsidiary of Japanese Investment giant Seibu Holdings Inc) acquiring 100 per cent of Australian-based Staywell Hospitality Group.
The transaction value is approximately AUD$50 million and sees Prince Hotels Inc add 30 hotels, including 12 in Australia, to its portfolio with significant further international growth to come.
Michael Simpson and Vasso Zographou from Savills Hotels led the transaction team, supported by Sheriden Bacon and Tom Shadbolt, with Tokyo-based Prince Hotels which owns and operates 49 hotels – 42 of them in Japan under The Prince, Grand Prince Hotel and Prince Hotel brands.
“The opportunity to acquire Staywell which has hotel operations spanning seven countries attracted Prince Hotels Inc,” said Savills Australia Director of Hotels, Vasso Zographou.
“The current phase of Staywell’s evolution had reached a stage where further capital will assist in funding future expansion and growth.”
The Staywell Hospitality Group operates hotels in Sydney, Melbourne, Brisbane, Townsville, the Hunter Valley and other Australian locations under the Park Regis and Leisure Inn brands.
It also operates a number of properties internationally in Singapore, Indonesia, India, Dubai and Birmingham and will continue with its asset light approach to hotel management as part of the new agreement with Prince and Seibu.
“This transaction is a great example of Australian entrepreneurialism creating a highly attractive global management platform,” said Savills Australia Managing Director of Hotels, Michael Simpson.
“The acquisition of the platform enables Prince Hotels Inc. to fast track its global growth through immediate presence in a range of international markets,” he said.