Hospitality fund manager Salter Brothers has bolstered its portfolio of luxury coastal retreats after snapping up Bannisters hotels in Port Stephens and Mollymook for over $100 million.
The properties comprise the 34-room hotel, Bannisters by the Sea and the 33-room establishment, Bannisters Pavilion, in Mollymook, as well as Bannisters Port Stephens, which has 78 guest rooms.
The hotel complexes feature famous seafood restaurants operated by celebrity UK chef Rick Stein in addition to a number of pubs, bars and spas.
"The drive market is what we are targeting [for this fund]," Salter Brothers managing director Paul Salter said.
"These hotels trade in the high 90 per cent occupancy range, sometimes even at 100 per cent. They are great assets that trade really well. They are popular as romantic getaways, for staycations and for weddings and events."
Bannisters was founded in 2003 by media entrepreneur Peter Cosgrove when he opened his first hotel, Bannisters by the Sea, in Mollymook after renovating an old motel.
Mr Salter said the current supply of new hotel accommodation was being hampered by rising construction costs, particularly for luxury venues in regional locations.
"These are distinct assets positioned in unrepeatable ocean-view settings and boast a reputation of consistently achieving high occupancy levels," he said.
It is understood the Rick Stein seafood restaurants would continue to operate under the new Salter Brothers ownership.
The off-market deal was negotiated by Savills alongside MinterEllison, consultants Napier & Blakeley and Ernst & Young.
"Bannisters has become an icon of Australian boutique hotels, and I'm thrilled to see our brand's growth under Salter Brothers Hospitality," said Alice O'Hara, commercial director of Bannisters Hotels.
"There are exciting opportunities ahead, and we are united in our commitment to exceptional hospitality. When our guests return, they'll be greeted by the familiar faces and unforgettable experiences they love."
Incoming owner Salter Brothers has $4 billion of assets under management including more than 40 hotels. Its other investments span property development, private credit, immigration investment and technology.
The Bannisters acquisitions come as Salter Brothers works on plans to potentially float a separate $2 billion portfolio of mostly IHG-operated CBD hotels including properties such as the five-star Intercontinental Rialto Melbourne, Crowne Plaza Coogee and voco Gold Coast.
