IHG closes deal on sale of Holiday Inn property at Melbourne airport [Construction Report]
The exterior of the Holiday Inn property in Melbourne, Australia. (Photo: IHG)
Leasehold interest of Holiday Inn Melbourne Airport sold to the Pelligra Group.
While many hotel transactions have stalled in their tracks, IHG is ploughing ahead with signings and sales, despite the uncertainty amid the current coronavirus crisis. InterContinental Hotels has sold the leasehold interest of a Holiday Inn property at Melbourne Airport to the Pelligra Group. We find out about this deal, which closed at the beginning of April.
Pelligra Group bets on IHG in Melbourne
Australian construction and development company Pelligra is betting big on IHG in Melbourne, following the closing of a number of deals to buy leasehold interests in properties in IHG’s portfolio in the city. The most recent deal signed was the sale of the Holiday Inn Melbourne Airport. The group is also in the process of becoming the owners of a number of other IHG properties in Melbourne, namely the Holiday Inn Melbourne Werribee and Holiday Inn Melbourne Richmond, both of which are currently in the pipeline.
Ross Pelligra, Chairman of Pelligra Group, spoke of the signing, and of Pelligra’s relationship with IHG, saying, “We are very excited to welcome a high performing hotel like Holiday Inn Melbourne Airport to the Pelligra Group, it’s a fantastic asset that fits perfectly into our portfolio. This is a long term investment for us. We have a strong balance sheet and we are committed to keep the hotel trading through the current challenging period and into Melbourne Airport’s new era of expansion, which will include an extensive refurbishment for this great hotel. IHG is a great partner and we are so pleased to work together on so many great projects.”
IHG has perfected the asset-light portfolio as a business model, and this strategy allows them to work more effectively with hotel owners, who take care of the bricks and mortar of the premises, allowing IHG to focus on what it does best: ensuring its brands are providing the kind of service and offering they are known for. The sale of the leasehold of the Holiday Inn Melbourne Airport to Pelligra supports this strategy.
Abhijay Sandilya, IHG’s Vice President Development, Australasia, Japan & Pacific, elaborated on the significance of this deal, saying, “We are particularly thrilled to expand our partnership with Pelligra Group. We have a fantastic relationship and together we will open Holiday Inn Melbourne Werribee in 2021 and Holiday Inn Melbourne Richmond in 2023. We’re pleased that the deal means that we not only continue to support IHG’s global strategy, but that the iconic Holiday Inn Melbourne Airport will benefit from refurbishment.”
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