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Case Study Hotels: Courtyard by Marriott

Courtyard Image_Hero Image_Website

218 Vulture Street, South Brisbane, QLD

Challenge

Having developed and opened this 134 room hotel in 2018, the Horan Group had leased the property out to an operator to run.
With the downturn in the hotel market caused by the pandemic, the lease arrangement was no longer feasible and the Horan Group contacted Colliers to assist in undertaking an Operator Selection.

Strategy

As developers with a long and successful track record of delivering quality residential and hotel projects, the Horan Group’s future strategy was to develop out a larger hotel portfolio, that they could take greater control over. For this reason, they were keen to undertake a franchise arrangement for the South Brisbane hotel.
The franchise agreement offered the benefits of a strong brand and systems that would deliver increased bookings to the property, while still giving the Horan Group greater control over the day to day operations.

Results

Colliers worked closely with the owners of the Horan Group to identify those aspects of the franchise that were most important to them, including brand, fee structures, franchise support and term.

We canvassed a broad range of operators before the Horan Group settled on Marriott, under their Courtyard by Marriott brand. A streamlined negotiation process was undertaken and executed in a matter of weeks.

Following a property improvements plan, the hotel was re-branded at the start of 2021, and to date has delivered strong returns to the Horan Group.

Testimonial

“The team at Colliers helped to guide us through the operator selection process, broadly canvassing the operator community, and then negotiating very favourable terms on our behalf. We found your team to be effective negotiators and operated in a highly professional manner throughout the campaign. Special thanks to you, Gus you are always helpful and really appreciate your hard efforts.”

Alice Li
Managing Director,
Horan Group


Related Experts

Gus Moors

Head of Hotels | Australia

Sydney

Having joined Colliers in early 2014, I have subsequently sold over $180 million of hotel assets across Victoria and NSW, including the largest hotel transaction in Victoria since 2008, being Bell City Preston for $143 million.

Prior to joining Colliers, I was Director of Asset Management for Tourism Asset Holdings Limited (TAHL), Australia's largest hotel owner and responsible for selling down this portfolio totalling over $1.5 billion.

Before TAHL, I was with Jones Lang LaSalle Hotels for 7 years, as Head of Asset Management and Chief Operating Officer for the Hotels group across Asia Pacific.

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Karen Wales

National Director, Asia Pacific | Hotels Transaction Services

Sydney

Karen has over twenty years of experience in the hotel industry and holds a Masters of Business Administration (MBA) from the Australian Graduate School of Management. She brings with her a specialised knowledge of the Asia Pacific hotel investment market and an ability to drive fresh capital into Australia’s hotel markets. She has developed an exceptional network over the past two years across Asia and the Middle East and within government, in her capacity as Senior Investment Specialist Tourism Infrastructure at Austrade and her knowledge of new entrants into the growing Australian tourism sector is second to none.      

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