IRIS SWOOPS ON IBIS IN $180m DEAL

Sam Arnaout’s Iris Capital has pounced on a portfolio of 17 Ibis hotels from Accor Invest in a deal worth $180 million, making it the biggest hotel transaction of the year.

The massive deal is for 17 freehold hotels, amounting to nearly 1800 rooms, all operated by Accor – the largest hotel operator in Australia. They comprise 12 assets in NSW, including the 200-room Ibis at Sydney Airport, three in Victoria, including the 230-room Ibis Melbourne Hotel & Apartments in the CBD, which is the largest property in the portfolio, one in Brisbane and one in Canberra.

Luxembourg-based Accor Invest – the investment platform out of Paris-listed AccorHotels – has had the collection on the market for some time.

In September last year a larger portfolio of 23 hotels was to be sold to Michael Gu’s iProsperity Group for $220 million, but the deal failed when Gu fled the country the month prior, owing investors $60 million and leaving iProsperity in the hands of administrators.

The purchase now by Arnaout’s private hospitality group is being seen as a strong sign investors are regaining confidence in the accommodation sector, which has been decimated by the pandemic shutdown and lack of international and even domestic travel.

Iris has been on a rapid expansion path, in recent years undertaking the massive East End project in Newcastle, last year purchasing the legendary Steyne Hotel for $60 million, the Cambridge Hotel for $56 million from ALH, and Joe Irvin’s big Sportsman’s Hotel in Blacktown. This year plans have emerged for the pub developer’s $65 million redevelopment of The Bourbon and Empire Hotels site.

This latest acquisition will instantly transform Arnaout’s outfit – which has always prided itself as publicans first – into one of the largest accommodation hotel owners in Australia.

“We are delighted to have secured such a large portfolio in one line. This purchase fits in well with our current hospitality pub portfolio, takes our count to 45 hotels and delivers on the group’s strategy for diversification,” he says.

“The AccorInvest portfolio is well placed for repositioning and gives Iris immediate scale in an extremely tightly held hotel market.”

PubTIC was unable to secure clarification on the “repositioning” Arnaout has in mind in time for publication, but will report any developments as received.