Friday, 31 December 2004
NRMA invests in Travelodge hotel group
NRMA Motoring & Services today announced it has entered into a Joint Venture agreement with JF Meridian Trust (JFM) to invest in the Travelodge Hotel Group.
Under the Agreement, NRMA Motoring and Services (50%), JF Meridian Management Limited as responsible entity of JF Meridian Trust (JFM) (49%) and James Fielding Trust (1%) will each purchase an interest in the Travelodge Hotel Group.
NRMA Motoring & Services Director and Chairman of the Board's Finance & Investments Committee, Mr Michael Tynan, said the investment in the Travelodge Hotel Group was the first direct investment made under the Company's revised long term investment strategy.
"Under the revised strategy, NRMA's focus is on investment opportunities which have stable capital values, regular income and are long term in nature,” Mr Tynan said.
NRMA's current investment portfolio is over $700 million. "The acquisition represents around 8% of our total investment portfolio and is attractive due to its forecasted long term returns in a low risk segment of the travel market."
Mr Tynan said the returns on the investment would be used to support the current and future financial sustainability of the organisation as well as the introduction of new products and services for NRMA Members.
"This is a long term investment with at least a 10 year horizon and a forecast income yield of at least 8% per annum," Mr Tynan said.
The Travelodge Group comprises eight hotels located in Melbourne, Sydney and Brisbane comprising a total of 1,355 rooms.
"Like the NRMA, the Travelodge brand has its origins in NSW and the investment is aligned with our core businesses of motoring and travel.
"We believe that the Travelodge brand offers potential for expansion in Australia and beyond. Part of the acquisition includes owning the Travelodge trade mark in approximately 30 countries around the world."
NRMA will not be involved in day-to-day operations of the hotels. They will be managed by Toga Hospitality who are experienced serviced apartment and hotel operators.
The transaction process is currently underway and will be completed by 1 March.
Under the Agreement, NRMA Motoring and Services (50%), JF Meridian Management Limited as responsible entity of JF Meridian Trust (JFM) (49%) and James Fielding Trust (1%) will each purchase an interest in the Travelodge Hotel Group.
NRMA Motoring & Services Director and Chairman of the Board's Finance & Investments Committee, Mr Michael Tynan, said the investment in the Travelodge Hotel Group was the first direct investment made under the Company's revised long term investment strategy.
"Under the revised strategy, NRMA's focus is on investment opportunities which have stable capital values, regular income and are long term in nature,” Mr Tynan said.
NRMA's current investment portfolio is over $700 million. "The acquisition represents around 8% of our total investment portfolio and is attractive due to its forecasted long term returns in a low risk segment of the travel market."
Mr Tynan said the returns on the investment would be used to support the current and future financial sustainability of the organisation as well as the introduction of new products and services for NRMA Members.
"This is a long term investment with at least a 10 year horizon and a forecast income yield of at least 8% per annum," Mr Tynan said.
The Travelodge Group comprises eight hotels located in Melbourne, Sydney and Brisbane comprising a total of 1,355 rooms.
"Like the NRMA, the Travelodge brand has its origins in NSW and the investment is aligned with our core businesses of motoring and travel.
"We believe that the Travelodge brand offers potential for expansion in Australia and beyond. Part of the acquisition includes owning the Travelodge trade mark in approximately 30 countries around the world."
NRMA will not be involved in day-to-day operations of the hotels. They will be managed by Toga Hospitality who are experienced serviced apartment and hotel operators.
The transaction process is currently underway and will be completed by 1 March.
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