M&LHospitality's A$1.5 billion sale process for its hotel portfolio in Australia andNew Zealand has been canceled, The Australianreported April 9.
The family-rungroup had indicated a sell-off of its hotel unit in Australia and New Zealand, comprisingsix assets with 2,089 rooms, in December 2015, as reported earlier. The sale attracted a number of from around the world.
The salewas scrapped in the same week that AscendasHospitality Trust endedtalks for a potential sale of its entire stapled securities. Ascendas'hotel portfolio was valued at A$1.4 billion, according to the report.
The publicationsaid the mooted sales indicate confidence in favorable conditions for the hospitalitysector, with improved hotel trading conditions and the expectations of continuedgrowth.
M&LHospitality is carrying out redevelopment works at the Four Points by Sheraton Sydney,aiming to convert the asset into a hotel and office complex with the addition ofa conference center and boutique office tower. Starwood holds the management rightsto the property, which will expire in the coming months, and a new operator dealcould boost the overall value of the company's portfolio, the report said.