holiday inn sales

Document Sample
holiday inn sales Powered By Docstoc
					 P R E S S                R E L E A S E                                                  CB Richard Ellis Pty Ltd
                                                                                            ABN 57 057 373 574

                                                                                    Level 26, 363 George Street
                                                                                              Sydney NSW 2000
                                                                                                     DX 10262

                                                                                            T 61 2 9333 3333
                                                                                            F 61 2 9333 3330



 For further information:
 Kathryn House
 Communications Manager
 61 2 9333 3585
 61 402 465 440

Eureka Funds Management to sell Holiday Inn hotels in Melbourne and Perth

Sydney, NSW (10 March 2009)

Eureka Funds Management has announced plans to sell Holiday Inn hotels in Perth and Melbourne amid
continued demand for strategically located hotel investment opportunities.

CB Richard Ellis Directors Rob Cross and George Nicholas have been appointed to manage the
Expressions of Interest campaign, which closes April 21, 2009

Mr Cross said the campaign was expected to attract significant interest given the strong underlying
fundamentals of the hotel markets in Perth and Melbourne.

“A supply/demand imbalance is supporting the continued strength of the Australian hotel investment
sector, despite the weakness in the broader market,” Mr Cross said

“We are seeing continued demand for well located hotel investment opportunities, particularly those
which offer the benefit of a recognised international brand such as Holiday Inn, which is part of the
worldwide InterContinental Hotel Group.”

The sale forms part of the longer term, strategic plan for Eureka’s first Core Fund, which last year sold
the Holiday Inn Townsville for $22 million.

Eureka Fund Manager Nigel Greenaway said Eureka has significant hotel interests starting with the 2005
acquisition of the Rialto Hotel on Collins in Melbourne and the Intercontinental Hotel Portfolio for a price
in excess of $330 million. Eureka managed funds also own the landmark Four Seasons Hotel in Sydney.

CBRE’s Mr Nicholas said the sale was expected to generate both local and international buyer interest.

“The value proposition of the Australian dollar and the perception of our market as a well regulated,
investment safe haven is driving increased foreign interest in the local hotel market, as seen by last year’s
$160 million sale of The Westin Melbourne and the recent $80 million sale of The Hyatt Regency in
Adelaide,” Mr Nicholas said.
                                                                                              10 March 2009

The Holiday Inn Perth is situated at 788 Hay Street, opposite the Central Park office tower and within
100 metres of Hay Street Mall. The four-star, 181-room hotel has been a consistent performer, with
occupancies running above 90% in recent years.

CBRE Hotels Senior Director in Perth David Kennedy said the sale represented the best CBD hotel
opportunity since the $52 million sale of the Citigate Hotel in 2007.

“Perth’s three, four and five star hotels have been consistently achieving strong results, with occupancies
exceeding 85% and average daily rates increasing, in most cases, by 12% in the past year,” Mr Kennedy

“Building and site costs are too high to justify new supply and this is underpinning increased demand for
Perth’s existing hotel stock.”

Mr Kennedy said the hotel had been regularly refurbished, with the most recent scheduled works
involving an upgrade of the ground floor alfresco area, restaurants and bar to increase food and
beverage trading and enhance the hotel entry.

“Year to date trading is in excess of last year, despite the current economic climate, and the hotel is well
poised to retain market share given the proposed and completed refurbishment programs and wide mix
of patrons, encompassing corporates, conference, aircrew and tourists,” Mr Kennedy said.

Up for sale in Melbourne is the Holiday Inn on Flinders, on the corner of Flinders Lane and Spencer
Street in the south western corner of the CBD.

The 4.5 star, 200-room hotel is situated close to the Southbank Entertainment Precinct, Docklands and
the Southern Cross Railway Station.

CBRE Hotels Director Scott Callow, said Melbourne’s back to back events calendar and continued
corporate demand has seen room rates and occupancy continue to grow in the local accommodation

While some softening in the market was expected this year, as new supply came on stream, Mr Callow
said Melbourne had traditionally absorbed new supply better than any other Australian city and, as such,
would continue to attract investor interest.

About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los
Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The
Company has more than 30,000 employees (excluding affiliates), and serves real estate owners,
investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis
offers strategic advice and execution for property sales and leasing; corporate services; property, facilities
and project management; mortgage banking; appraisal and valuation; development services; investment
management; and research and consulting. CB Richard Ellis has been named a BusinessWeek 50 “best
in class” company and Fortune 100 fastest growing company two years in a row. Please visit our Web
site at

                                                                                                       Page 2

Shared By:
Tags: holiday, sales
Description: holiday inn sales