InterContinental Hotels Group (IHG) has invested AU$150mn in its Australian Hospitality Opportunity Fund (AHO), which is financing the roll out of the Holiday Inn Express brand in Australia.
The first closing of the fund has now taken place and in addition to IHG, the fund comprises investors from established offshore family offices who are interested the brand.
Pro-invest Group, in close collaboration with IHG and leading industry designers and consultants, has tailored the design of the typical Holiday Inn Express hotel to meet the requirements of the Australian market which will give the brand a significant competitive advantage in the market.
The firm currently has two hotels in the pipeline – Holiday Inn Express Sydney, Macquarie Park and Holiday Inn Express Brisbane Spring Hill – which are slated to open in the next two years. The group is developing a pipeline of 15 Holiday Inn Express hotels across Australia, and is in advanced negotiations on another five sites. Pro-Invest Group is also actively seeking additional sites to develop Holiday Inn Express properties, and expects to announce further acquisitions by the end of 2014.
Jan Smits, chief executive officer for Asia, Middle East and Africa, at IHG said: “Australia is an important market for us and we are committed to growing our brands here.
“With their reputation as a hotel developer and operator, and a strong management team who is well acquainted with IHG, we are confident our partnership with Pro-Invest Group will establish Holiday Inn Express as a preferred brand in Australia.”
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