12th Oct 2015 08:08
LONDON (Alliance News) - Action Hotels PLC Monday said it has completed the acquisition of the ibis budget hotel at Melbourne airport in Australia.
The acquisition brings the number of Action Hotels' operating hotels to nine, with 1,561 rooms. It also has a fully-funded development pipeline of nine hotels and a further 1,332 rooms.
Action Hotels, which owns three and four-star hotels in the Middle East and Australia, agreed to buy the ibis Melbourne airport hotel in July for USD8.8 million. It is the group's seventh ibis branded hotel, and the second ibis hotel which it owns and operates in Melbourne. ibis is owned by France's Accor SA.
Action Hotels funded the purchase through USD3.7 million from its existing cash resources and the remainder through debt secured on the hotel property provided by the property's current lender St Georges Bank, at a fixed rate of 4.99% per year for five years to 2020.
In 2014, the ibis hotel averaged 89.8% occupancy and made earnings before interest, tax, depreciation and amortisation of USD1 million.
Shares in Action Hotels were untraded on Monday morning, last quoted at 51.00 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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