Melbourne-based investment firm Salter Brothers is undertaking a significant rebranding of its hotel assets, transitioning properties from the Crowne Plaza label to premium InterContinental and Regent brands. The move, representing an investment exceeding A$1 billion, aligns with the group’s broader strategy to launch a hospitality real estate investment trust (REIT) within 18 months.
Managing director Paul Salter confirmed that six assets valued at over A$1 billion, currently under management by IHG Hotels & Resorts, will be included in the REIT alongside other holdings. “We are still continuing to pursue an IPO, it’s a hospitality REIT. It’s 18 months away, it’s still a part of the larger strategy,” he said.
Hotel rebrand and return
Salter Brothers and IHG have jointly announced upgrades to properties in Melbourne, Sydney, Canberra and the Gold Coast. Notably, the Crowne Plaza Melbourne and Sydney Coogee Beach will be rebranded as InterContinental hotels, while InterContinental Melbourne the Rialto will be transformed into the Regent Melbourne. “Everything in today’s announcement…so that is the Regent Hotels, the (new) development in Canberra. The development assets will (also) go in once they are built,” said Salter.
The announcement marks the return of the Regent Hotels & Resorts brand to Australia after 28 years. Planned developments also include a new Hotel Indigo in Canberra and an expanded voco hotel on the Gold Coast.
Salter said the changes reflect confidence in the luxury and lifestyle segments. “This new agreement represents over $1 billion investment in the luxury and lifestyle segment and highlights our conviction in providing distinctive lifestyle experiences for travellers globally, with an emphasis on timeless style, culinary mastery and wellness facilities for guests.”
Despite headwinds in Melbourne’s hotel market, where rate growth fell 3.3% in FY24, Salter remains optimistic. “That new supply has been delivered over the next 12 months. The Melbourne market has been resilient, it’s the sporting capital of Australia and a great events market,” he said.
The redeveloped Regent Melbourne is expected by 2030, with the non-heritage portion of the existing InterContinental hotel set to be replaced by a new tower. “For that asset we looked at an appropriate brand, with the capital we wanted what we considered a six-star brand, and The Regent has some beautiful properties globally it would be appropriate for that site,” Salter said.
IHG’s Matt Tripolone noted the strategic nature of the asset locations, stating, “In our view, these markets are significantly mature and now lend themselves to more premium brands.” He added that the rebranding effort enables Salter Brothers to reposition assets and unlock value over the long term.
The Crowne Plaza Sydney Coogee Beach will relaunch as InterContinental Sydney Coogee Beach by late 2025. The Canberra developments will include the InterContinental Canberra and boutique Hotel Indigo Canberra. Refurbishment and expansion are also planned for the voco Gold Coast.
IHG Hotels & Resorts currently operates 77 hotels across Australasia under nine brands including Six Senses, InterContinental, Hotel Indigo, voco, and Crowne Plaza.