Regal Partners, an Australian investment manager, is expanding its activities beyond hedge funds to include private asset investments such as hotel properties. The organization has acquired a 50% interest in Ark Capital Partners, a hotel investment firm active in Australia and New Zealand. Since 2021, Ark has allocated over $350 million to upgrade premium hotels, marking Regal’s first step into the hotel sector.
One component of this strategy is the purchase of the Mayfair Hotel in Adelaide for $75 million. This acquisition forms part of the foundation for Regal’s new Australian Hotel Opportunities Fund. Financing for the purchase includes bank loans and investors from outside parties, with completion expected this month. Regal is hoping to take advantage of current changes in the hotel market, where prices and demand are still bouncing back after recent travel restrictions and disruptions.
According to Regal’s chief executive, the company considers buying the hotel a strategy that could help investors earn steady profits. Leadership at Ark Capital Partners cited ongoing demand and identified opportunities within the hotel sector in both Australia and New Zealand.
Regal’s activity in private assets is in line with its existing investment areas, which include credit, real estate, and alternative strategies. The company continues to invest across multiple asset classes.