AccorHotels today announced that it has completed its acquisition of Mantra Group for $1.2 billion.
The deal includes the Mantra, Peppers, BreakFree and Art Series hotel brands, representing a total of 138 hotels in Australia, New Zealand, Hawaii and Bali.
Michael Issenberg, chairman and CEO of AccorHotels Asia Pacific said: “The Mantra Group is the latest chapter in the strong growth story of AccorHotels in the region. Since our launch with the Novotel Sydney on Darling Harbour in 1991, AccorHotels has become the largest hotel group in the Pacific, and Australia has always played a key role in that story.
“AccorHotels is a significant contributor to the Australian tourism industry, and this deal is a signal of our confidence in Australia both as an attractive destination for global travellers but also as a feeder market for our Asia Pacific and wider network.”
|Simon McGrath and Michael Issenberg celebrate at Peppers Soul, Gold Coast|
At the close of the deal, AccorHotels will operate over 330 hotels and resorts across Australia and over 900 throughout Asia Pacific. AccorHotels will also be the largest employer on the Gold Coast, outside of government.
Simon McGrath, COO of AccorHotels Pacific said, “The Mantra Group brands will enhance AccorHotels’ portfolio and create new opportunities for our people, partners and guests. We believe that tourism is critical to the economic growth of the region and future job creation and this deal will allow us to further develop the industry.”
McGrath added that innovative growth was a hallmark of both AccorHotels and the Mantra Group.
“Our innovation in economic business models, brands and customer initiatives has fueled our growth over the last 27 years and the Mantra Group has built an innovative business focused on the best partnership experience for its 10,000 strata title owners,” he said.
“Under Bob East’s leadership this bespoke approach and responsiveness has seen it maintain and grow rooms under management. We see enormous value in leveraging Mantra Group’s entrepreneurial spirit and expertise to create new opportunities.
“Mantra’s brands and properties perfectly complement the AccorHotels network and will enable us to provide new destinations and new experiences for our guests. We look forward to combining the talent and expertise of both groups to create an even more innovative, agile and dynamic team.”
Bob East, CEO of Mantra Group said, “I am immensely proud of the great company we’ve built and what we’ve achieved as an Australian-based business. It’s been an enjoyable journey for me leading the team since 2007 through to our float on the ASX in 2014 and now closing this deal with AccorHotels. 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 Mantra Group leadership team will continue to be based in the Gold Coast office, reporting to McGrath, in line with all other AccorHotels Pacific business units.
Whether this diluting of competition will be good for hotel guests remains to be seen.