Constellation acquires Sundowner brand

The rapid expansion of Constellation Hotel Group’s portfolio of properties and locations gained further momentum today with the hotel and resort company acquiring another great Aussie brand, Sundowner Motor Inns.

The Sundowner brand – spread across country towns and cities in NSW, South Australia, Victoria and Queensland – perfectly compliments the Country Comfort Hotels network and further strengthens Constellation’s ability to meet the needs of travellers in Australia’s regional destinations, including families and business travellers.

Constellation’s acquisition of the Sundowner Motor Inns franchise business comes just days after the group entered the New Zealand market by partnering with the New Zealand Motel Federation – a development that will result in up to 57 motels adopting Constellation’s Country Comfort brand.

The addition of 20 Sundowner motels and the expansion across the Tasman takes Constellation’s portfolio to 114 properties operating in metropolitan, regional and resort destinations.

Constellation’s brands will now include Country Comfort (3 – 4 star), Sundowner (3* to 4.5*), Chifley (4* to 4.5*) and Australis Hotels, Resorts & Apartments (4* – 4.5*).

Another three ’new generation’ Chifley hotels are also under development in high-growth areas, including Eastern Creek in Sydney’s Western Suburbs, Doveton in Victoria and Gladstone in Queensland, with the new Chifley properties providing a comfortable, efficient and affordable environment, designed for the 21st century traveller in terms of fit-out, design and IT options.

Constellation Hotel Group General Manager Jonathan Wooller said the Sundowner deal further demonstrated Constellation’s ability to work with a variety of hotel owners and investors by offering unique commercial arrangements – from franchising through to full management agreements, adding “The combination of Constellation’s strong regional network and its stable of properties in capital city and resort locations mean the group now offers the financial investment community a way to become aligned with a rapidly growing Australian hotel network that will rival large hotel players”.

“By further expanding our network, Constellation can achieve greater operational efficiencies while remaining focussed on accessibility and transparency for our business partners.”

“We plan to continue to grow both of these great Australian brands, Sundowner and Country Comfort, into the future as well as move ahead with a series of new hotel ventures in 2007.”

Constellation is acquiring the Sundowner franchise business from Lend Lease Real Estate Partners 2 (REP2), a Lend Lease wholesale fund which today went unconditional with a takeover bid to acquire all the shares in Sundowner Motor Inns Ltd.

Darryl Courtney O’Connor, founder and Chairman of CHG parent company Touraust Corporation, said the Australian-owned group’s independence was a key factor in its ability to forge relationships with large corporations such as Lend Lease, adding, “Being non-aligned we can work with a multitude of corporate players while maintaining the integrity of our relationships”.

Report by The Mole