AccorHotels is adding three of Australia’s biggest hotel and resort brands to its portfolio as the soon-to-be owner (subject to regulatory approval) of Mantra Hotels.
The hotel giant confirmed that it has signed agreement to acquire Mantra Group Limited, less than a week after revealing it was in discussions to purchase the business.
As part of the acquisition, AccorHotels will take control of all issued capital in Mantra, which includes 127 properties across Australia, New Zealand, Indonesia and Hawaii under three key brands – Peppers, Mantra and BreakFree.
AccorHotels will also claim Mantra’s 5,500 employees and its core accommodation services such as its guest relations and reception areas, restaurants and bars, conference and function centres, pool and entertainment facilities and offices.
It’s unclear whether the agreement includes the Art Series Hotel Group, which was purchased by Mantra in August this year.
The group’s Chief Executive, Sébastien Bazin, said he’s delighted to have reached an agreement with the Mantra Group and expects the purchase to “underpin our long-term growth in the Asia Pacific region”.
“Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia.”
Sébastien Bazin, AccorHotels Chief Executive
Mantra’s Chairman, Peter Bush, said they’re leaving the business “in good hands” and believes customers will benefit from the expertise of both groups.
“Mantra’s strong expertise in apartments, in particular, and our presence in resort locations are very complementary to the AccorHotels operations in Australia and New Zealand,” he said.
Under the terms of the agreement, AccorHotels will pay AU$3.96 in cash for each Mantra share including any potential special dividend.
The transaction is subject to regulatory approvals, including from the Australian Foreign Investment Review Board, the Federal Court of Australia and the Australian Competition and Consumer Commission, as well as the approval of Mantra shareholders and other customary conditions. It is anticipated that subject to regulatory and shareholder approvals, the transaction should be completed by the end of the first quarter 2018.
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READ: Art Series Hotel Group finds a new home in Mantra