Choice Hotels Asia-Pac has acquired the City Edge Apartment Hotels franchise, a move which will double its presence in inner Melbourne.
The deal adds 271 apartment-style rooms across five locations in South Melbourne, North Melbourne, Melbourne CBD, East Melbourne, and Box Hill.
The acquisition, including City Edge’s active franchise agreements, the brand, and associated IP, is the result of Choice Hotels’ strategy to drive growth in the region.
City Edge deal first in Choice Hotels’ new strategy
Trent Conroy, head of investments and portfolio growth for Choice Hotels Asia-Pac said the acquisition represents the direction the group is taking.
“We have a strong balance sheet and a model that enables us to be a flexible partner for diversified development opportunities to drive our expansion across the Asia Pacific region,” he said.
Choice Hotels Asia-Pac’s CEO Trent Fraser said the deal will deliver benefit incoming franchisees.
“We believe that our commercial and franchising platform including revenue management services, global distribution offerings, sales and rewards program Choice Privileges will all greatly benefit the City Edge portfolio.
“For our guests, the properties are well located to take in the best of Melbourne for leisure while giving corporate guests more extended-stay options for us.”
Investment-led growth is a new focus
Expansion through acquisition, investment, strategic partnership, and other investment-led arrangements is a new focus for Choice Hotels Asia-Pac.
“The City Edge acquisition demonstrates we have the right local team, thinking and model to think big and make bold moves towards our goals,” Fraser said.
Choice Hotels International’s senior vice president and general manager of international Ricardo Losada Revol echoed the sentiment.
“The City Edge deal is a good first step for the Asia-Pac region’s investment-led growth and we’re excited to see the continued development in that space,” Losada Revol said.
“Our Asia-Pac business has experienced significant growth – both in delivery for their franchisees and the organic expansion of the Asia-Pac portfolio. This deal proves our business model and readiness to pursue inorganic opportunities.”
