Salter Brothers snap up Bannisters Resorts featuring Rick Stein restaurants
In a significant deal valued at over $100 million, Salter Brothers has purchased three Bannisters Resorts located on the New South Wales north and south coasts, two of which include iconic British chef Rick Stein's renowned seafood restaurants.
The acquisition includes the 34-room Bannisters by the Sea and 33-room Bannisters Pavilion in Mollymook, as well as the 78-room Bannisters Port Stephens.
It is understood that Stein's celebrated seafood restaurants will continue to operate under the new ownership and that Salter Brothers Hospitality will manage the hotels and the existing 150 staff once the acquisition is complete later this year.
Bannisters by the Sea interiors were designed by renowned fashion designer Collette Dinnigan, capitalising on the property's uninterrupted ocean views. The design incorporates wide oak floorboards, wooden shutters, and deep white linen sofas, creating a serene and inviting atmosphere. This project marked one of Dinnigan's early ventures into interior design.
In explaining the acquisition, Salter Brothers managing director Paul Salter highlighted the current challenges facing the development of new hotel accommodation. Rising construction costs, particularly for luxury venues in regional locations, are hindering the supply of such properties.
“These are distinct assets positioned in unrepeatable ocean-view settings and boast a reputation of consistently achieving high occupancy levels,” Salter said.
The last few months have been a period of growth for the fund manager, which is Australia’s second largest hotel owner with 4921 hotel rooms. The latest acquisition broadens the group’s asset base with many of its properties currently IHG-managed, including The Rialto InterContinental in Melbourne and in Sydney, the Holiday Inn in Potts Point and the Crowne Plaza in Coogee.
As previously reported, Salter Brothers is exploring the possibility of an initial public offering (IPO) for its hotel assets, with an ASX listing being considered in the short to medium term. The internal equity capital markets advisory team is currently working on the details of this potential listing, and the amount of capital to be raised has yet to be determined.
Prior to the Covid-19 pandemic, the company had considered listing a hotel fund but decided to postpone those plans.
In addition to Bannisters, Salter Brothers has been actively acquiring hotel assets, particularly in regional areas, as it focuses on the domestic tourism market. Last year, the company purchased the renowned Hydro Majestic Hotel in Sydney’s Blue Mountains and Lilianfels Resort in New South Wales. A year earlier, it acquired the luxury chain Spicers Retreats from the Turner family, the owners of Flight Centre.
Salter Brothers has a history of strategic partnerships in the hotel industry. In 2021, it partnered with Singapore's sovereign fund, GIC, to acquire the TraveLodge portfolio for $620 million. In 2015, the company completed the acquisition of the IHG Hotel portfolio from Eureka Funds Management.
The former owner of the Bannisters Mollymook property was media entrepreneur Peter Cosgrove, who with two Sydney real estate agents were the vendors of the Port Stephens hotel.
Jonathan Jackson, 9th October 2024
