EVT Limited’s third-party management arm EVT Connect Hospitality announced its acquisition of the Pro-invest Group's hotel management company.
The transaction includes long term hotel management agreements for 15 hotels across Australia and New Zealand, comprising approximately 3,200 rooms, operated under third party brands.
Pro-invest Group will retain asset management responsibilities for the 15 hotels owned by the three hotel investment funds via its fund management platform.
Shared goals
Since its inception, Pro-invest Group demonstrated its ability to develop, open, and operate real estate assets, having grown to a network of 30 hotels across Australia and New Zealand.
According to its founder and chairman Ronald Barrott: “Our goal has always been to deliver high-quality, resilient assets that meet the evolving needs of modern travellers and investors alike. We will continue to focus on hotel asset management while expanding in the rapidly growing sectors of flex living, BTR, and mixed-use developments. This deal with EVT is the right deal to benefit both our investors and our people and will further enhance EVT's growth trajectory”.
EVT chief executive Jane Hastings added: “The launch of EVT Connect Hospitality, seeded by the acquisition of PIH, represents a further initiative to grow hotel earnings. EVT Connect Hospitality will further enhance EVT's ability to deliver value for asset owners who seek to franchise a third-party brand, supported by the expertise of the PIH team and now boosted by the ability to leverage our extensive EVT Group expertise. We look forward to welcoming the PIH team to our Group.”
Likewise, CBRE’s head of hotels and hospitality Steve Carroll remarked: “This is an exciting deal that will enhance the hotel operating environment across Asia Pacific. EVT Connect Hospitality will inject expertise and capability to drive operating performance of the hotels. This operating solution is widely used across North America and Europe, and we expect this model to continue to evolve and grow across Asia Pacific in future years. We congratulate both parties on this transformational deal.”
What happens now?
Pro-invest Group’s hotels will continue to operate under their existing brands, and for guests and partners, it will be business as usual.
Completion of the transaction will be subject to informal clearance from the Australian Competition and Consumer Commission and certain procedural conditions precedent.
At the same time, Pro-invest will retain its operating capacity and will continue to manage its VISTA hotels portfolio, while expanding its focus in commercial office, Flex living and other operational real estate investment opportunities, including BTR.
Its fully integrated platform will continue to offer a suite of services across investment, development, asset management, and operations.
