Abu Dhabi wealth fund eyes local hotel assets
ONE of the world’s largest sovereign wealth funds, the Abu Dhabi Investment Authority, could be searching for more property in Australia, according to the head of its hotel investments division.
Mike Goodson, visiting Sydney for the first time since concluding a record-breaking $800 million purchase of Australia’s largest hotel owner, Tourism Asset Holdings in September last year, said his phone was ringing regularly.
“We’re still very open (to acquisitions), we are working on the financing already, and we may well invest further if there is the right opportunity,” he said.
Mr Goodson flagged an interest in mid-market hotels, but only on a larger scale.
“If you look back at the history of ADIA’s exposure, it’s mainly been at the luxury end,” he said. “One of the things that the new team I’ve put together has been able to bring is a realisation that it is possible to make a good return in mid-scale and limited service (hotels).
“The execution there is more about what’s going on in the macro economy, we’re mindful of every individual hotel but more focused on the portfolio opportunity than each individual asset.”
The $US627 billion ($670bn) ADIA fund owns hundreds of hotels across the US, Britain and Australia.
Mr Goodson said the fund was looking at hotels in Asia, but had found it difficult because of a lack of volume.
“Those (properties) that do trade and would be of interest to us trade privately so we don’t get an opportunity,” he said.
“One of the challenges of being based in Abu Dhabi, we all live there and travel a lot and it has a lot of positives, is that it makes market connectivity a little bit more challenging.”
