Opportunity to land prime airport hotels in Perth and Melbourne

​Melbourne, 28 August 2014 – Tourism Property Investment gp (TPIG) is moving to sell two of its prime Ibis Budget Hotels in Perth and Melbourne following the successful sale last month of the Ibis Windsor in Brisbane.

CBRE Hotels has been appointed as the exclusive sales agent for the two properties, which are available either individually or in one line.

Both assets occupy prominent, high exposure locations and benefit substantially from airport patronage.  The Melbourne Ibis is within the city’s sought after airport precinct whereas the Perth property is on the Great Eastern Highway, approximately 2km from Perth Airport and approximately 10km from the Perth CBD.

Wayne Bunz, Senior Director CBRE Hotels, said; “Both hotels have similar trading characteristics, great locations, high occupancies, affordable rates and healthy profit margins. Based on the success of the Brisbane Ibis Budget campaign, where the property sold three days prior to the close of Expressions of Interest, we are very confident these two assets will generate similarly strong buyer interest.”

The Perth Ibis has a total of 73 rooms as well as surplus land, which would allow for further development.

CBRE Hotels Senior Director David Kennedy said; “The Perth Ibis will sell readily as it has a strong trading performance as well as future development upside. This becomes a real focus when occupancy levels exceed 80% and the hotel has achieved over 85% in recent years.”

In the case of Melbourne, the exclusive and sought after airport precinct location will be one of the key selling points according to CBRE Hotels Director Scott Callow.

“Although the property is the subject of a 33 year ground lease, the cash flow and high exposure near the airport will attract a range of buyers,” Mr Callow said.

Mr Bunz added that both properties fulfilled a market niche of modern budget accommodation and had very limited competition.

“Both are managed by Accor Asia Pacific who saw the need for purpose built budget accommodation before many other hotel operators and enjoy a large market share because of this,” Mr Bunz said.

“This budget style hotel has limited food and beverage services which mean low overheads and high profit margins close to 50% of gross revenue. This ensures that while tariffs are extremely competitive, profitability remains at very acceptable levels.”

Expressions of Interest close October 2, 2014.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.