A $1 billion deal between Abbot and an unnamed Canadian company is about to come to fruition, the Wall Street Journal reports.
The Australian company, which Abbot had partnered with for about two years, is also a major player in Australia’s hospitality industry.
The announcement comes amid the recent push by Abbot to diversify its portfolio.
“The company has been focused on the development of a global hospitality portfolio and Abbot has been able to make this investment at a competitive price, which enables the company to pursue further strategic partnerships and enhance its position as a global leader in the field of wellness,” the company said in a statement to the WSJ.
The news comes just two weeks after Abbot acquired a number of smaller brands in the form of restaurants and coffee shops, including the famous Blue Bottle and a number smaller operations in Australia.
Abbot’s new deal with Blue Bottle will give the hotel chain an even larger presence in the region, as well as expanding its footprint in the Middle East.
While Blue Bottle has a significant footprint in Asia, the hotel chains decision to invest in a brand-new business in Australia was met with some skepticism, given the company’s past history of falling short in the market for hotel rooms.
But the company has responded by increasing its footprint to include restaurants, coffee shops and retail stores in Australia, and has been looking for ways to expand its footprint beyond just its traditional business in the country.
In October, Abbot announced a new brand called “The Hotel of the Future” in Australia and was in talks to expand into India.
In December, Abbots new Australian office was opened in the city of Melbourne, with a total of eight rooms to be opened by the end of the year.
For more information on the hotel deal, you can check out WSJ’s report here.