Last year, Singapore-listed Frasers Hospitality Trust acquired the Sofitel Sydney Wentworth last May from another Frasers-managed trust for $224 million. For the new year, the company is reportedly eyeing the Melbourne hotel market as part of plans to grow its $2 billion hotel portfolio.
FHT, a wholly owned subsidiary of Asian real estate giant Frasers Centrepoint, announced late last week that it had established a S$1 billion billion multi-currency debt issuance program to finance "potential acquisitions and investment opportunities" and to refinance existing borrowings.
Potential acquisition targets could include the Hilton Melbourne South Wharf Hotel, put up for sale in August last year by US hospitality property giant Host Hotels & Resorts and developer Plenary Group with a reported $250 million price tag. JLL is overseeing the sale of the 364-room hotel, which is in due diligence.
The Melbourne DoubleTree by Hilton and Travelodge hotels are also up for grabs as part of the M&L Hospitality portfolio. The Ascendas Hospitality Trust, which includes seven Australian properties is also on the market. Later this year, Savills Australia will begin marketing the 269-room five-star hotel component of Cbus Property's $1.25 billion mixed-use development at 447 Collins Street.
According to the The Australian Financial Review, a spokeswoman for Frasers Hospitality Asset Management said that the trust's three Sydney hotels saw occupancy rates hitting 91 percent in 2015. FHT has no exposure to the Melbourne hotel market, which has reportedly matched Sydney's performance.
Frasers Hospitality Trust has not issued any official announcement with regards to acquisition plans.