Brookfield Asset Management has announced that it is acquiring Hotel X Brisbane Fortitude Valley, Vignette  Collection, a 146-key, luxury hotel in Brisbane’s Fortitude Valley.

The hotel was completed in 2021 and includes a ground floor restaurant, rooftop bar and pool, 1,438 square  metres of leased office space, a fitness centre and conferencing space. Fortitude Valley is a lifestyle hub  known for its popular dining and retail scene and is in close proximity to the Brisbane CBD.

The acquisition underscores Brookfield’s conviction in Brisbane, Australia’s fastest-growing capital city with  a thriving hospitality market. The city is benefitting from strong sector tailwinds ahead of the 2032 Olympic  Games, including a lack of new hotel supply, strong economic and population growth, a buoyant tourism  industry and robust consumer spending.

Ruban Kaneshamoorthy, Brookfield Co-Head of Australia Real Estate, said: “Hospitality is a growing focus  for us in Australia and across the Asia Pacific, driven by growing international and domestic tourism  numbers and reduced supply given increased borrowing and construction costs. We are actively looking at  other hospitality opportunities around Australia as we seek to grow our hospitality platform.

“With the highest tourism expenditure nationally and its population forecast to grow 40 per cent during the  next 25 years, there is a long runway for growth for Brisbane’s hotel market, which is expected to drive  significant revenue growth in the medium term.”

Ark Capital Partners, a firm specialising in acquisitions, investment and asset management, acted for  Brookfield in facilitating the transaction. Rahul Parrab, CEO of Ark Capital Partners, said: “We are thrilled  to have worked with Brookfield on the acquisition of Hotel X. The property offers immense potential for  growth and innovation in guest experiences.”

Brookfield globally is one of the largest owners and operators of hospitality assets with a portfolio of approximately US$20B assets under management, which represents over 40,900 keys across North  America, Europe and Asia.

CBRE Hotels’ Wayne Bunz and Hayley Manvell handled the sale of the hotel via an off-market process.

Wayne Bunz, CBRE Hotels’ National Director, said: “The sale of Hotel X represents a landmark transaction  in the Brisbane hotel market, building upon on a string of high-profile hotel sales and reinforcing Brisbane  City’s position as a hotspot for hotel investment.

“This transaction is not only a testament to the quality of the asset but also to the strength of Brisbane’s hospitality sector, which is underpinned by rising tourism numbers and a strong economic trajectory.”

Launched globally in 2021, Hotel X Brisbane, Vignette Collection is IHG Hotels & Resorts first collection  brand and represents a curation of distinct hotels, demonstrating diversity and discovery. The brand offers a compelling way for owners of one-of-a-kind hotels to benefit from IHG’s powerful enterprise offering and  global scale. 

The transaction is expected to close by the end of 2024.