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Accor, Ascendas complete acquisition of Mirvac Group's hotel interest
May 23, 2012
by Cheryl TayAccor has successfully completed the acquisition of Mirvac Group's hotel interests in New Zealand and Australia, boosting the company's assets to 43 hotels across the two countries. Mirvac Group has been in close coordination with Accor to ensure a systematic integration of the hotels into their network. Under the first phase, the Sydney Marriott Hotel will now be re-branded as Pullman Sydney Hyde Park, while Sebel Newcastle Beach (pictured) will be called Novotel Newcastle Beach from June. The Sydney Marriott Hotel will undergo A$7 million (S$8.7 million) worth of refurbishment, to be funded by the Mirvac Wholesale Hotel Fund. The makeover will include the renovation of all remaining rooms and significant upgrades to the lobby and public areas. On the other hand, most of Mirvac's hotels will hold on to their existing brands, namely Quay West Suites & Resorts, Resorts & Residences, Citigate Hotels, Sea Temple and Sebel Hotels. But in future, the hotels will eventually be rebranded under Accor's upscale Pullman brand. "The settlement of this deal will fundamentally re-shape the hotel industry in Australia and New Zealand," said Michael Issenberg, Chief Operating Officer for Accor Asia Pacific. "We have seen many of the original overseas players in the hotel sector retreat from this region in recent years while Accor has aggressively grown its network through management and franchise contracts and strategic acquisition deals such as the purchase of Mirvac's hotels." Meanwhile, Ascendas Pte Ltd joined Accor in the acquisition of a 49.2 percent stake in the Mirvac Wholesale Hotel Fund. Ascendas will be the manager of the fund, which will soon be rebranded as Ascendas Australia Hospitality Fund (AAHF). Chong Siak Ching, Ascendas President & CEO, said, "We are excited to be working with Accor, our strategic partner in the AAHF and one of the largest hotel operators in the Asia Pacific region with a wealth of experience in hotel management. Our venture into the hospitality sector adds greater breadth and depth to our real estate business."