This article is from the Australian Property Journal archive
Accor Asia Pacific are Australia’s largest accommodation provider with MFS emerging as one of the most aggressive buyers of hotel rooms in 2006, according to a survey of the industry by Jones Lang LaSalle Hotels.
According to JLL’s, annual Top Operator Survey, Accor remains Australia’s Top Accommodation Operator with almost 17,000 rooms under management.
JLL said many hotel operators achieved solid growth during 2006 resulting from a range of Merger & Acquisition activity, management changes and new developments.
JLL Hotels’ annual Top Operators survey spans 98 hotel and serviced apartment operators around Australia and covers over 100,000 rooms.
At the end of 2005, Accor recorded almost twice the number of rooms under management when compared to the next largest operator – InterContinental Hotels Group. At the end of 2006, this margin has been reduced by approximately 50%.
JLL Hotel’s Asia Pacific chief executive David Gibson said that following four major acquisitions, MFS saw its operating company, Stella Hotels & Resorts, catapult past IHG into 2nd position with growth of almost 140%.
MFS has emerged as an aggressive acquirer, most notably in the previously fragmented Management Rights sector. Acquisitions in 2006 include competing leisure operators, Outrigger Hotels & Resorts (1,500 rooms) and S8 Limited (3,546 rooms) and CBD operators, THL’s Pacific International (1,817 rooms) and Stockland’s Saville Hotel Group (1,725 rooms).
“Many of these properties will be rebranded to one of Stella’s existing brands – Mantra, Peppers, Breakfree or Bale.
“These acquisitions will not only give Stella a dominant competitive position across the leisure market in Queensland but also diversify income streams to include city hotels which are benefiting from an upswing in business travel on the back of the strong economy,” he added.
Gibson said that having achieved a dominant position in Australia, MFS are said to be looking offshore to United Arab Emirates, India, Singapore, Pakistan and different parts of Europe.
“With a reported pipeline of 2,220 rooms across 21 properties over the next two to three years, we expect MFS to gain further ground throughout 2007,” Gibson said.
Mirvac Hotels & Resorts also made significant gains in the number of rooms under management most notably following the acquisition of the Carlton Portfolio through a joint venture between Bank of Scotland (UK) and Mirvac Funds Management. This acquisition led to the establishment of a new unlisted hotel fund.
Gibson said Mirvac increased the number of rooms under management by 1,842 rooms — 66.5%.
Top 10 Accommodation Operators as at the end of December 2006
Source: Jones Lang LaSalle Hotels
Australian Property Journal
