MANTRA'S RECORD YEAR OF ACQUISITIONS AS IT MOVES TOWARDS ACCOR DEAL
Written on the 9 November 2017 by Ben Hall
TAKEOVER target Mantra Group (ASX: MTR) has reported its largest year of growth since its inception in 2009, with a record number of new properties joining its hotel and resort portfolio in 2017.
The Australian accommodation giant, which last month unanimously accepted a $1.2 billion takeover offer from French hotel group Accor, added 13 new properties to its portfolio in the calendar year with at least six more scheduled in the next few years.
Mantra Group CEO Bob East says the company's acquisition focus this year has been on the domestic market and its presence has increased in almost every Australian state.
"The number of enquiries we've received from hotel developers, owners and investors hit record levels this calendar year, with a year-on-year increase of 10 percent," East says.
"This interest signals positive activity in our sector and is a clear indicator of confidence in an established, well-resourced hotel operator."
The new properties in the Mantra Group portfolio in 2017 include Mantra the Observatory in Port Macquarie, Mantra Club Croc at Airlie Beach, Tribe Perth, Mantra Hotel at Sydney Airport, FV by Peppers in Brisbane, Mantra MacArthur Hotel in Canberra and seven properties within the acquired Art Series Hotel Group.
The boutique hotel group was acquired in August for $52.5 million and settlement is due to take place at the end of November.
A number of new property acquisitions, which are scheduled to open in 2018 and beyond, were also signed by Mantra this year.
Mantra on City Road in Melbourne is scheduled to open its doors in March 2018; Mantra at Sharks, Southport on the Gold Coast will open in April 2018 in time for the Gold Coast 2018 Commonwealth Games; Peppers Silo Hotel at Launceston Tasmania is set to open in April 2018; Mantra Epping, Melbourne will open in mid-2019; while Mantra M-City in Melbourne's south-east is due for completion in late 2020.
Mantra Group, which consists of 129 properties with more than 22,000 rooms in properties under management operates the Peppers, Mantra and BreakFree brands in Australia, New Zealand, Indonesia and Hawaii.
Last month it received an indicative and non-binding proposal from Accor to acquire all of its shares at $3.96 per share and granted the suitor due diligence to consider the offer.
Mantra says the deal is subject to an independent expert concluding the deal was in shareholders' best interests and is also subject to regulatory review.
Mantra shareholders will vote on the scheme at a meeting expected to be held in March 2018.
Business News Australia
Author: Ben Hall