[News] Ovolo hotels expands property investment as tourism recovers from pandemic

Independent lifestyle hotel brand Ovolo is on an expansion path across the country to capitalise on the long-term growth of the travel and property investment sectors.

The brand having tripled its room count in the last five years, including adding two assets during the pandemic, market conditions are now ripe to seek value-add and conversion opportunities to take advantage of the recovery.

After building its foundations as an owner-operator, Ovolo is now looking to more than double its network, and will ramp up growth efforts via acquisitions, hotel management agreements (HMA), joint ventures and investment partnerships.

Ovolo Woolloomooloo in Sydney’s inner east is gaining from the rise in tourism

Ovolo Woolloomooloo in Sydney’s inner east is gaining from the rise in tourism

Ovolo Hotels chief executive Dave Baswal said the time is ripe to embark on its next chapter. Ovolo is looking to expand further in Australia, New Zealand, and selected Asia Pacific target markets where it can leverage its strong brand value.

“The market is definitely headed in the right direction. We’re seeing the recovery at a much faster pace than anyone anticipated, especially fuelled by the domestic ledger trouble. And now we’re seeing the corporates returning at a much faster pace,” Baswal said.

“We are already seeing some good outcomes and the average daily rate currently is much higher than what we were getting in 2019, and that’s a very positive sign.”

After opening its first hotel in Indonesia late last year, Ovolo is also keen to grow in major urban and leisure destinations in Asia including Tokyo, Singapore, Bangkok, and Phuket. In addition, the group is eyeing key source markets in Europe and beyond.

In Australia, Ovolo has hotels in Sydney’s Woolloomooloo Wharf, Ovolo The Valley in Brisbane, Ovolo Laneways and Ovolo South Yarra in Melbourne, and the Ovolo Nishi in Canberra. There is also the Ovolo Collective Hotels down the Australian eastern seaboard and Hong Kong, and the Mamaka by Ovolo in Kuta Beach, Bali.

Baswal said the group will also look at satellite areas that are within a two-hour radius of a capital city, such as Geelong, south-west of Melbourne, and Parramatta in Sydney’s west.

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