AccorHotels, which is the biggest hotel operator on the European continent, has offered to buy the Australian Mantra Group Ltd. in a deal that values that hotel chain at about $930 million, according to a recent press release from Mantra.
Mantra made the statement after reports began to swirl that an offer had been made, stating that the company “has received an indicative and non-binding proposal from Accor S.A. in relation to a potential control transaction, to be implement by way of a Mantra scheme of arrangement.” The release went on to detail the prices associated with the offer, noting that Mantra had granted Accor access to its books and finances as part of the potential sale process.
If the deal goes through without hitting a snag, it would mark Accor’s largest acquisition into the Asia-Pacific Region, bringing the company more than 20,000 rooms in properties spread throughout Australia, New Zealand and Indonesia. The acquisition is likely to strike many industry experts as a savvy move, given that this corner of the world is one that has grown in popularity among tourists in recent years and shows few signs of slowing down soon. This spike in popularity has been driven by growing Chinese travel demands.
Analysts have already begun to point out that acquiring Mantra would greatly bolster Accor’s ongoing efforts to add more properties in mid and upscale markets within the Asia Pacific region.
This non-binding offer from Accor comes after nearly six months of speculation among the Australian hotel sector that Mantra had been in play, speculation that resulted in a run on the companies shares when it first came to light back in March. Although no bid emerged then, it was thought that some of the biggest hotel chains in the world were interested in acquiring Mantra, hotel chains such as Marriott, InterContinental, Hyatt and the China-based HNA and Manshan.
Mantra currently owns and operates more than 125 properties. Accor, as noted, is the largest hotel operator in Europe, which also makes it one of the most significant hospitality companies in the world, with more than 4,200 hotels. If this deal proceeds, it will ultimately be subject to approval from both the Mantra and Accor boards.
Accor has a history of acquiring large operators in the region in recent years, having bought into Mirvac’s hotel operations in 2012 and the Fairmont, Raffles and Swissôtel operations in 2015. The company’s newest asset in the region is Sofitel Sydney Darling Harbor, which opened its door in the last week and already has an impressive 60 percent occupancy rate.
This deal would result in the effective merger of Australia’s two largest hotel chains, which would mean that if agreed upon it would also be subject to clearance by the Foreign Investment Review Board as well as Australia’s competition watchdog, the ACCC.
Mantra Hotels has the following projects currently in the pipeline:
MANTRA HOTEL, M-CITY MONASH
The Mantra Hotel will have a conference centre and ballroom [MORE INFO…]
PEPPERS SOUTHBANK, MELBOURNE
Peppers Southbank, a full-service hotel, is set to open on a prime site on the corner of Clarendon and Haig Streets in Melbourne’s vibrant Southbank precinct [MORE INFO…]
MANTRA WALLAROO SHORES
Mantra Wallaroo Shores Resort is located in the prime position of the 18.5 hectare Wallaroo Shores development [MORE INFO…]
More information on Mantra Group hotels can be found on TOPHOTELPROJECTS, the specialized service provider in the exchange of cutting-edge information of hotel construction in the international hospitality industry.