Choice Hotels Asia-Pac is expanding its presence in Australia by more than 270 rooms with the acquisition of asset-light franchisor, City Edge Apartment Hotels.
The deal builds on Choice Hotels’ Melbourne portfolio with the addition of five properties across key business hubs, totalling 271 apartment-style rooms.
The acquisition, brokered by specialist accommodation property agency ResortBrokers on behalf of owners Peter and Irena Cushen, includes City Edge’s active franchise agreements, the brand, and associated IP.
“The City Edge acquisition is illustrative of the direction we’re headed,” said Choice Hotels Asia Pac Head of Investments and Portfolio Growth, Trent Conroy.
“We have a strong balance sheet and a model that enables us to be a flexible partner for diversified development opportunities to drive our expansion across the Asia Pacific region.”
Choice Hotels Asia-Pac’s Chief Executive Officer, Trent Fraser, said the deal will deliver benefits for guests and incoming franchisees.
“We believe that our commercial and franchising platform including revenue management services, global distribution offerings, sales and rewards program Choice Privileges will all greatly benefit the City Edge portfolio,” said Fraser.
“For our guests, the properties are well located to take in the best of Melbourne for leisure while giving corporate guests more extended-stay options for us.”
Choice Hotels Asia-Pac is focused on expansion through acquisition, investment, strategic partnership, and other investment-led arrangements, according to Fraser, with the business having appointed local experts to support this strategy.
“The City Edge acquisition demonstrates we have the right local team, thinking and model to think big and make bold moves towards our goals,” Fraser said.
“We’re confident our franchise brands are best-in-class and give operators, investors and developers the opportunity to get ahead in the local accommodation market.”
Choice Hotels International’s Senior Vice President and General Manager of International, Ricardo Losada Revol, said the Asia-Pac business is in a strong position for continued growth.
“The City Edge deal is a good first step for the Asia-Pac region’s investment-led growth and we’re excited to see the continued development in that space,” Losada Revol said.
“Our Asia-Pac business has experienced significant growth – both in delivery for their franchisees and the organic expansion of the Asia-Pac portfolio. This deal proves our business model and readiness to pursue inorganic opportunities.”