AccorHotels completes $1.2 billion Mantra Group acquisition
31 May 2018, Written by David Simmons
AccorHotels is now the proud owner of a number of iconic Australian hotels after completing the $1.2 billion acquisition of Mantra Group.
The company announced on Thursday afternoon that the acquisition of Mantra Group has been completed, bringing the Mantra, Peppers, BreakFree, and Art Series brands under the Accor brand.
The deal includes 138 of Mantra's hotels in Australia, New Zealand, Hawaii, and Bali.
Acquiring Mantra Group is the latest feather in Accor's cap since launching the Novotel Sydney on Darling Harbour in 1991 according to chairman and CEO of AccorHotels Michael Issenberg.
"The Mantra Group is the latest chapter in the strong growth story of AccorHotels in the region," says Issenberg.
"AccorHotels has become the largest hotel group in the Pacific, and Australia has always played a key role in that story."
AccorHotels will now operate over 330 hotels and resorts across Australia and over 900 throughout Asia Pacific.
The company is now also the largest employer on the Gold Coast, outside of the government.
Simon McGrath, the COO of AccorHotels Pacific, praised Bob East's passionate leadership in growing Mantra into what it is today.
"Under Bob East's leadership this bespoke approach and responsiveness has seen it maintain and grow rooms under management," says McGrath.
"We see enormous value in leveraging Mantra Group's entrepreneurial spirit and expertise to create new opportunities."
East, the CEO of Mantra Group, says he is proud of the company he has helped build.
"I am immensely proud of the great company we've built and what we've achieved as an Australian-based business," says East.
"I have enormous belief in the business and the team here is looking forward to working with Simon and AccorHotels to continue this success."
The leadership team from Mantra will remain based in the Gold Coast, working with the new team and reporting to McGrath.
Mantra Group listed on the ASX in 2014, and will now delist following the acquisition, marking the effective "life" of the group as an ASX-listed company.
The $1.2 billion sale of Mantra was approved by 96 per cent of shareholders last week. On the 24 May the Federal Court gave the takeover of Mantra the green light, resulting in the shares of Mantra bring suspended on the ASX.
The French company made its bid for Mantra last October, which was unanimously accepted by the Mantra board.
Accor's business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantra's focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
Accor is part of one of the world's largest hotel and tourism groups, AccorHotels which is listed on the French Stock Exchange. In Australia, Accor has a network of over 200 hotels and offers a range of short-term accommodation options.
Mantra is Australia's second largest accommodation provider and operates 136 properties with more than 24,000 rooms across Australia, New Zealand, Indonesia and Hawaii.
Business News Australia
Author: David Simmons