Choice Hotels Asia-Pac gives itself the ‘edge’ in Melbourne with new acquisition

Choice Hotels Asia-Pac gives itself the ‘edge’ in Melbourne with new acquisition
Edited by Travel Weekly


    Choice Hotels Asia-Pac is expanding its presence in Australia with the acquisition of the City Edge Apartment Hotels franchise.

    The new additions double Choice Hotels Asia-Pac’s portfolio in the inner city Melbourne market, adding 271 apartment-style rooms across five prime locations near key business hubs – 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 a strategy to drive growth in the region.

    “The City Edge acquisition is illustrative of the direction we’re headed,“ Trent Conroy, head of investments and portfolio growth, Choice Hotels Asia Pac, said.

    “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.”

    City Edge Apartments – East Melbourne

    The deal, brokered by specialist accommodation property agency ResortBrokers on behalf of owners Peter and Irena Cushen, is expected by Choice Hotels Asia-Pac’s chief executive officer Trent Fraser to deliver benefit for guests and 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,” Fraser said.

    “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.”

    Expansion through acquisition, investment, strategic partnership, and other investment-led arrangements is a new focus for Choice Hotels Asia-Pac, a move Fraser sees reflective of Choice’s leadership in the local industry.

    “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.

    “We’re confident our franchise brands are best-in-class and give operators, investors and developers the opportunity to get ahead in the local accommodation market.”

    Choice Hotels International’s SVP and GM of International Ricardo Losada Revol says the recent activity is a sign the Asia-Pac business is in a strong position for continued growth.

    “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.”

    (Featured Image: City Edge Apartments – South Melbourne)

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