TOURISM BOOM GIVES OAKS APPETITE FOR GROWTH
Written on the 7 March 2016 by Nick Nichols
OAKS Hotels & Resorts, which has a strong presence in the Queensland market, is actively pushing to expand its Australian footprint with its Thai owner eyeing opportunities in Perth, Canberra and Hobart to grow the brand.
The former ASX-listed company, secured by Minor Hotel Group (MHG) in a $129 million takeover bid in 2011, is aiming to establish a property in every Australian state over the next five years.
The move is part of a global strategy by Minor Hotel group to also extend the Oaks brand into India, China and Indonesia. The group has a portfolio of 52 properties, with six of them located across New Zealand, Thailand and the UAE.
A new hotel in Brisbane, Oaks Woolloongabba, will next month boost its already solid foothold in the Queensland market, particularly south-east Queensland.
Minor Hotel Group CEO Dillip Rajakarier has revealed ambitions to boost the Oaks portfolio by 20 new properties over the next five years, adding to the 18 it has added since acquiring the former Sunshine Coast-based group.
The move follows a 38 per cent increase in net profit for the division in 2015, a result that is attributed to cost controls and the ongoing strength in the domestic tourism market.
"The results confirm we are in a solid position to forge ahead with a scalable expansion over the next five years as we look to take advantage of a number of promising acquisition and management opportunities that will accelerate our growth trajectory both in Australia and overseas," says Rajakarier.
"At this point we plan to add up to 20 new properties to Oaks Hotels & Resorts' portfolio, which includes introducing the brand into more international destinations where some of Minor Hotel Group's other brands, such as Anantara and AVANI, are already well recognised.
"I believe Oaks Hotels & Resorts will perform very well in these markets, lending to the demand from business and leisure travellers seeking spacious, well-equipped apartment accommodation that reflect the comforts and conveniences found at home."
Almost half of the Oaks hotel portfolio is located in Queensland, with the company last year securing its first property in the Northern Territory, the Oaks Elan Darwin, for about $57 million.
"We are actively seeking opportunities in Western Australia, Tasmania and the Australian Capital Territory, with the aim of Oaks Hotels & Resorts having presence in every Australian state and territory," says Rajakarier.
"This is certainly one of our five-year objectives and a natural progression for Oaks Hotels & Resorts, and we have already received strong interest from our partners and loyal guests about expanding into these exciting new destinations."
Author: Nick Nichols