Consolidated hotel focus

Written on the 18 January 2011

CONSOLIDATED Properties Group (CPG) is embarking on a concerted drive into the hotel market with the launch of a new management arm.

Consolidated Hotel Group (CHG) has been established to internalise the company’s previously outsourced hotel management operations and to provide a new hotel aggregation vehicle.

It will also undertake a bullish acquisition drive that will see its freehold hotel portfolio treble to around $150 million in the next 12 months.

CPG managing director Don O’Rorke, says the group is ‘looking at’ Melbas on the Park in Surfers Paradise’ but affirmed that it was too early to speculate on a deal. He says the Australian hotel industry is in a reconsolidation phase following the break-up of several major hotel portfolios created before the global financial crisis. CHG will target Queensland and NSW with the ink set to dry on the first acquisition by next Easter.

“Most of these hotel groups, including some that were listed, have gone bust and the properties are now being bought by new owners and operators at much lower prices,” says O’Rorke.

“We think there are some excellent buying opportunities out there at the moment and we are very keen to participate in the new industry consolidation that’s now underway.

“Consolidated Hotel Group has been set up, funded and staffed to allow us to go after those opportunities and take a more aggressive position in the market as both a hotel buyer and operator.“

CPG owns five hotels in Queensland and northern NSW ­— the Surfers Rowers bar and restaurant at Surfers Paradise, the Boardwalk Tavern at Hope Island, the Links Restaurant and Bar at Hope Island, the Australian Hotel at Murgon and the Sandbar + Grill at Casuarina Beach in northern NSW.

Management of CPG’s hotels was previously contracted to the independently owned Pub Group but will now be managed by CHG.

Pub Group will continue to own and operate two other hotels not connected to CPG, The Beach at Cabarita and The Cove at Burleigh.

O’Rorke says CPG has achieved its revenue targets for 2009 well ahead of schedule and is viewing the current property market and financial environment as the ideal opportunity to set its work pipeline for the next five years and beyond.

Since the company’s re-launch earlier this year after being bought back from its former listed parent Trinity Group, CPG has successfully rolled over all its debt and posted more than $25 million in property settlements comprising more than 500 individual sales.

The sales comprise 90 freehold marina berths priced from $120,000 at CPG’s Hope Island Resort marina and 416 equity memberships in the newly privatised Links Hope Island golf club at an average $30,000 per membership.

Assets include the 26ha Casuarina Town Centre site in northern NSW and landholdings at Hope Island Resort on the northern Gold Coast, which include a golf course housing subdivision, apartment and boutique hotel sites.


Latest News

APOLLO REVS UP ITS RESULTS

APOLLO Tourism & Leisure (ASX: ATL) has hit its profit forecast in its maiden result as a publicly traded company...

JASMINE YARBROUGH AND TAMIE INGHAM TAKE MARA & MINE TO HOLLYWOOD

MARA & MINE entrepreneurs Jasmine Yarbrough and Tamie Ingham (pictured left and right respectively) slipped in...

HUGE PROFIT SPIKE FOR HELLOWORLD HEALS MERGER WOUNDS

HELLOWORLD (ASX: HLO) gripped the share market this morning after its announcement of a whopping 880 per cent increas...

PROFIT DROP AT SERVCORP

SERVICED office company Servcorp has seen its profit fall, citing New York City, Singapore and Saudi Arabia as the pr...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter