Pan Pacific unit acquires Hilton's Melbourne hotel

Pan Pacific Hotels Group (PPHG), through its wholly-owned subsidiary Success City Pty Limited, has agreed to purchase Hilton Melbourne Airport Hotel for approximately $141.55 million.

PPHG, a unit of UOL Group, said it had entered a sales agreement with Mulpha Hotel and Mulpha Hotel (Melbourne) to purchase the 276-room Australian hotel.

The acquisition is part of the company’s move for its regional expansion plans. “The acquisition is part of PPHG's plans to expand its hotel property portfolio and hotel management businesses in the Oceania region and it views a presence in Melbourne as an important strategic commitment,” said PPHG.

“The acquisition is also expected to enhance the collective operating efficiency of the PPHG Group's three other hotels in Australia, through economies of scale and greater brand awareness.”

An initial 10 percent deposit has been paid by PPHG and the remaining 10 percent will be paid on completion in March next year.

The sales deals are subject to approval by the Foreign Investment Review Board of Australia.