Ovolo expands into Canberra
Hong Kong boutique chain Ovolo has added to its rapidly expanding Australian portfolio by acquiring the rights to manage the 68-room Hotel Hotel in Canberra from local powerhouse developer Molonglo Group.
This adds to its $40 million acquisition earlier this month of the 102-room Emporium Hotel in Brisbane and buying the 50-room New Inchcolm Hotel & Suites, also in Brisbane for $16.5 million in June.
The portfolio also includes two Sydney hotels in Woolloomooloo and Darling Harbour, and one on Little Bourke Street in the centre of Melbourne.
Unlike the other Australian deals, Ovolo this time has not acquired the underlying real estate for one of its Australian hotels.
The long-term leasehold deal with Molonglo delivers Ovolo the businesses and operations for the hotel, its hatted restaurant and Monster bar and kitchen.
Ovolo will retain the current staff.
"Ovolo Hotels has been well received in Australia and we are proud to bring our signature concept to the Australian capital. We believe this venture is the perfect alignment and are delighted to be associated with this property," Ovolo Hotels CEO Girish Jhunjhnuwala told the Australian Financial Review.
The art-inspired Canberra hotel is highly regarded.
It has picked up international project of the year at the 2015 Building Awards in London.
Its design includes a timber facade, plants growing on the outside and a grand staircase entrance made of timber from a recycled basketball court.
Nectar Efkarpidis, director of Molonglo Group, said the deal with Ovolo would allow Molongolo to focus on new projects in Canberra and beyond.
"Hotel Hotel was the physical manifestation of ideas that we had been exploring for several years. About architecture, design, objects and furniture, and how they can help us to evolve and expand Canberra's civic sense of itself with others," Mr Efkarpidis told the Australian Financial Review.
by Leon Gettler, January 18th 2017
