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Outrigger Sells Australia, New Zealand AssetsAugust 24, 2006 By: Camie Foster Travel Agent
In a deal expected to close by year's end, Outrigger Hotels Group is selling its ties to 11 Australia hotels, two New Zealand hotels and six Australia projects under development. Purchasing Outrigger's management rights and any real estate interests in the 19 properties is MFS Ltd., a publicly held Australia investment firm. At current exchange rates, the deal is worth more than $91 million, according to MFS. Use of the Outrigger brand is not part of the deal; the properties will be reflagged with brands owned by MFS' tourism operator, Stella Resorts Group. Outrigger will use the proceeds to reinvest in other Australia and New Zealand opportunities, as well as elsewhere in Asia and the Pacific, says David Carey, president and CEO of Outrigger Enterprises Group. The sale doesn't affect any of Outrigger's other international operations, including the six properties operating or under development in Bali, Fiji, Guam and French Polynesia. Visit [www.outrigger.com].