Travelodge Docklands sold for $107 million to Singapore developer
Singaporean developer Sing Holdings ha swooped on the Travelodge Docklands, picking it up for $107 million.
It is the first hospitality acquisition for Sing Holdings which is primarily a builder of apartment buildings in Singapore.
Sing Holdings paid a $5.35 million deposit for the acquisition of the 14-storey limited-service hotel. The full $107 million is payable in cash.
According to its statement to the Singapore exchange, the purchase will be funded out of debt and the group’s internal cash resources.
The group said the acquisition is not expected to have a material impact on consolidated net tangible assets per share and consolidated earnings per share.
Travelodge Docklands is a freehold, 14-storey hotel. It is located at 66 Aurora Lane, Docklands, Melbourne. It was opened in February 2010 and it operates as a limited service hotel. It boasts 291 guestrooms, a lobby, a food and beverage outlet, meeting rooms, a business centre, guest laundry and other amenities.
It is well located too, sitting near Southern Cross Railway Station. It is only a few minutes’ walk to the Etihad Stadium, the Melbourne Convention & Exhibition Centre and Crown Casino. Corporate offices such as those of Medibank, Commonwealth Bank of Australia, Marsh Mercer, KPMG and the Australian Taxation Office are also nearby.
The location means it will be well patronised by businesses in Docklands' growing office sector and by sports fans coming into Etihad Stadium.
The location in Docklands is also critical. According to STR Global, the precinct has a full year occupancy rate last year of 86.5 percent and an average room rate of $206.
Up until now, Travelodge Docklands has been leased long term to Medina Property Services, part of the TFE Hotels group, which operates hotels across Australia, New Zealand and Europe. Once the lease is transferred, the hotel will continue to operate under the Travelodge brand.
TFE is managed by the Sydney-based Toga Group and the Singapore-based Far East Hospitality Holdings.
by Leon Gettler, October 21st 2016
