$1B deal for Salter Brothers, IHG in Australia

SYDNEY – IHG Hotels & Resorts and Australia’s Salter Brothers have signed a major long-term agreement to rebrand and reposition several high-profile properties, most notably the existing InterContinental in Melbourne set to become a Regent Hotel by 2030, marking a return of the brand to Australia after 28 years when The Regent in Sydney became the Four Seasons.

This agreement represents over $1 billion investment for Salter Brothers in the Luxury & Lifestyle segment, according to Paul Salter.

The news breaks as Salter Brothers pushes ahead with plans to list the company on Australia’s ASX stock exchange within 18 months with hopes to build a $2.5 billion hotel portfolio in Asia Pacific.

We are delighted to announce an extended long-term agreement with Salter Brothers, which further strengthens our existing, highly successful relationship. This partnership accelerates IHG’s Luxury & Lifestyle growth in Australia and enables Salter Brothers to reposition key assets and unlock long-term value in this space.

Mark Tripolone

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The partners plan to rebrand a number of IHG’s lower-tier Crowne Plaza hotels as part of a deal, including the Crowne Plaza Sydney Coogee Beach to InterContinental Sydney Coogee Beach; Crowne Plaza Melbourne to InterContinental Melbourne; and the Crowne Plaza Canberra site is to be redeveloped into the new InterContinental Canberra. A second hotel will also be developed on this site, to bring Hotel Indigo to Canberra.

The first voco hotel to open globally, the voco Gold Coast, which was another IHG/Salter Brothers collaboration, will undergo a refurbishment and expansion of its leisure facilities.

IHG Hotels & Resorts has 76 hotels in Australasia operating under nine brands with another 26 properties in its development pipeline.

Matt Tripolone, IHG Hotels & Resorts managing director, Australasia Pacific, said: “We are delighted to announce an extended long-term agreement with Salter Brothers, which further strengthens our existing, highly successful relationship. This partnership accelerates IHG’s Luxury & Lifestyle growth in Australia and enables Salter Brothers to reposition key assets and unlock long-term value in this space.

“We’re thrilled to be bringing our Regent Hotels & Resorts brand back to Australia after an absence of 28 years, with Regent Melbourne on track to welcome guests in 2030. With three InterContinental properties also on the horizon, and a new hotel, Hotel Indigo Canberra, in our sights, we’re delighted to have cemented our leading Luxury & Lifestyle position in the country.

“Overall, this agreement underscores the strength and evolving nature of Australia’s hotel market and highlights the growing trend for conversions in our industry as guests increasingly seek immersive Luxury & Lifestyle experiences across the country.”

Paul Salter, managing director, Salter Brothers, said: “We have a strong history with IHG spanning more than a decade, and are fully committed to our partnership which continues to drive growth for our assets. This new agreement highlights our conviction in providing distinctive lifestyle experiences for travelers globally, with an emphasis on timeless style, culinary mastery and wellness facilities for guests.

“We look forward to working with IHG throughout the journey of these exceptional hotels, and welcoming domestic and international guests to experience these incredible properties under their new brands in the coming years.”