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1 October, 2024

Crystalbrook Collection the first known Australian hotel brand to secure a sustainability-linked loan

Edited by Travel Weekly

Crystalbrook Collection has become the first known hotel brand in the country to secure a Sustainability-Linked Loan, supported by the Commonwealth Bank of Australia.

The Sustainability-Linked Loan, a relatively new concept in the financial world, is designed to incentivise and support companies that demonstrate a strong commitment to sustainability. Unlike traditional loans, these financial instruments tie the borrower’s cost of debt directly to their sustainability performance, incentivising the company to achieve ambitious predetermined environmental or social targets.

Geoff York, CEO Crystalbrook Collection.

Geoff York, CEO of Crystalbrook Collection, expressed enthusiasm about the deal.

“This loan is a testament to our unwavering commitment to sustainability leadership in the hospitality industry. It not only provides us with the financial flexibility to further our sustainability initiatives but also validates our efforts to date,” he said.

York also highlighted the business implications of this recognition.

“Increasingly, companies require evidence of sustainability policies as a precursor to engagement and we hope CBA’s recognition of our sustainability commitment will help to support both sustainability and business outcomes.”

The loan’s structure requires Crystalbrook Collection to meet sustainability performance targets. Crystalbrook’s targets are focused on minimising water usage and waste, reducing carbon emissions, and enhancing energy efficiency across the hotel chain’s properties.

Chris Williams, Executive General Manager of Major Client Group at CBA, said it was a significant deal.

“We are delighted to support Crystalbrook’s sustainability initiatives with this Sustainability-Linked Loan. Crystalbrook is already setting industry standards and we are proud to continue our partnership as they set even more ambitious sustainability targets,” he said.

Crystalbrook Collection has already implemented numerous sustainability initiatives across its properties, including the use of recycled materials in construction, digital check-ins to reduce paper waste, and partnerships with local, sustainable food producers.

For the past three years, Crystalbrook has used Earth Check, an independent measurement platform, to benchmark their environmental performance across the industry. This rigorous assessment has validated their leading position, with multiple Crystalbrook hotels in the 100th percentile across key performance metrics, specifically in emissions, energy, and water usage.

Crystalbrook’s Queensland portfolio includes Crystalbrook Riley, Crystalbrook Bailey and Crystalbrook Flynn, all in Cairns, and Crystalbrook Vincent, in Brisbane; in NSW, its portfolio includes Crystalbrook Albion, Sydney, Crystalbrook Kingsley, Newcastle, and Crystalbrook Byron, Byron Bay.

Crystalbrook Sam, Adelaide, South Australia opens in 2026, while Crystalbrook Canberra, ACT opens in 2027.

It also has an affiliate hotel: Sydney Harbour Hotel, George St, The Rocks and owns and operates a collection of 17 restaurants and bars, three Eleme Day Spas and Crystalbrook Superyacht Marina in Port Douglas.

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