NRMA has made its first direct investment in property since the Board announced it would be revising the company’s investment policy.

In what has been hailed as one of the biggest hotel deals of 2004, NRMA has entered into a joint venture agreement with JF Meridian Trust to purchase the Travelodge Hotel Group. The Hotel Group has six hotels in NSW and one each in Queensland and Victoria.

NRMA Deputy President and Chair of the Finance and Investment Committee, Michael Tynan (pictured), said the purchase of a 50 per cent stake in the Travelodge Hotel Group last December was the icing on the cake after a strong half-yearly performance by NRMA’s investment portfolio.

“The announcement that NRMA had purchased half of Travelodge came at the same time the organisation could report to Members a 13 per cent return on its investments for the six months to December 31, 2004,” says Michael.

“The acquisition of one Australian icon by another is a good move by our company when we consider that 80 per cent of Travelodge’s customer base is local visitors.

“They are often Australians on a driving holiday, and being able to cater to their needs will only strengthen NRMA’s overall approach to being a one-stop shop for Australians looking to organise their domestic travel.”

Michael says that the Board’s decision in November to revise NRMA’s investment policy will see the company direct a substantial portion of its $700 million portfolio to investments that are diverse, provide a more long-term, stable return for the company and reduce the vulnerability of a fluctuating stock market.

“Returns on our investment act as NRMA’s war chest. This money goes directly into funding many of the programs and services that continue to create real value for our Members.

“The Board’s decision to invest in opportunities that will provide a more stable, long-term return will help the organisation better plan how it wishes to grow its services and programs.”