Blue Sky Private Equity and Greg Maitland have today jointly acquired a portfolio of South Australian hotels in a business to be rebranded GM Hotels.
The portfolio consists of 10 suburban hotels in Adelaide with significant infrastructure and diverse revenue streams.
GM Hotels will be run by CEO Greg Maitland who has an extensive history in the pub industry nationally and is a long time resident of Adelaide.
“I am looking forward to the opportunity to partner with Blue Sky and to focus on the operational performance of the portfolio in my home town,” Mr Maitland said.
Blue Sky Private Equity executive Andrew Champion said Blue Sky had been looking for the right opportunity in the pub sector for a number of years.
“We are attracted to the defensive nature of these pubs flowing from their scale, multiple revenue streams and their strong suburban catchments. These hotels are well operated and invested however there are selective operational improvement opportunities and surplus land assets we will exploit in due course,” Mr Champion said.
“We are also delighted to be partnering with Greg who has a proven track record.”
GM Hotels includes the Beach Hotel, Christies Beach Hotel, The Lodge and the Tower. All are suburban pubs located between five and 40 kilometres from the Adelaide CBD.
The portfolio includes three freehold going concerns and seven long leasehold going concerns, with an average leasehold period well in excess of 30 years. GM Hotels is expected to deliver a stable earnings base and a double digit cash yield to investors.
Blue Sky Private Equity is a division of Blue Sky Alternative Investments Limited.
