Pan Pacific acquires Melbourne hotel

Pan Pacific Hotels Group yesterday announced that its wholly-owned subsidiary, Success City, had agreed to acquire Hilton Melbourne Airport Hotel in Australia for about $141.6 million as part of its regional expansion plans.

Pan Pacific, part of the UOL Group, said it planned to manage the 276-room hotel under its Park Royal brand.

The acquisition could, through economies of scale and greater brand awareness, enhance the operating efficiency of its three other hotels in Australia, it said.

Bank borrowings and internal resources will finance the acquisition, it added.

The hotel is being acquired from Malaysia’s Mulpha Hotel and Mulpha Hotel (Melbourne), which are divesting their interest in the Australian hotel, Pan Pacific said.

The deal is subject to approval from the Foreign Investment Review Board of Australia.

Source : Today – 17 Dec 2010

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