Growth is very much on the agenda for Toga Far East Hotels – the newly re-branded joint venture between Toga Group and Far East Hospitality. TFE now has 65 hotels either owned, leased or under management – and wants more.
“We have $200 million to invest at the moment, capital ready to deploy,” said Rachel Argman, CEO of TFE Hotels.
Ms Argaman said TFE is actively sourcing new opportunities in Australia, New Zealand, Europe and “some other geographies”.
“We’re looking across the board: management agreements, leases, ownership, joint ventures,” she said.
“There are such strong plans for Vibe, Adina and Travelodge at the moment.”
TFE also manages the Rendezvous Hotels brand across five properties in Australia and provides “consultancy services” for another six.
The broad strategy for TFE in Tier 1 cities is development, such as the new Vibe Hotel at Canberra Airport announced yesterday, while in Tier 2 cities management is the preferred option.
The 191 room Vibe Canberra is being developed in conjunction with Canberra Airport. The 4.5 star hotel is due to open in October 15.
TFE is also in the running for a number of other projects but the market is intense.
“There’s huge competition for existing assets and not a lot put up for sale,” she said.
Which is where Ms Argaman says TFE has an advantage over competitors in terms of geographic reach, financial firepower and in-house construction expertise through the property development arm of the Toga Group.
Apart from commercial benefits, Ms Argaman said the JV also acts as a beacon to staff and culture.
“It’s a strong motivator and internal signal to our team that Toga Hotels is maturing and growing as an organisation.
“Strong branding equals corporate culture and with this new umbrella brand comes the growth story, making TFE Hotels aspirational to potential new talent.”
- Ms Argaman is speaking at No Vacancy in Sydney on March 26.