Accor Buy Mantra…Final Approval in March 2018

Date: November 2018

Location: Australia, New Zealand and Hawaii

Name: They operate the brands Art Series, Peppers, Mantra and Breakfree

Peppers Noosa Resort & Villas

No. of Keys: 22,000

Seller: Mantra, 22,000 rooms under management in 135 properties. Largest hotel & resort operator in Australia, with AUD8bn assets under management. Besides hotel, major apartment/condo operator. Listed on the Australian Securities Exchange (ASX:MTR) in June 2014.

Mantra’s board unanimously approved Accor’s bid to acquire all shares of the company in October 2017 at $3.96 each. The group is awaiting its shareholders’ vote on the offer, which is reportedly scheduled in March 2018.

Mantra just settled its $52.5-million acquisition of the Art Series Hotel Group on Nov. 21, 2017 from the Deague Group.

The purchase added 1000 hotel suites and apartments within seven hotels in Melbourne, Adelaide and Brisbane to Mantra’s portfolio. Mantra’s portfolio buy piqued investor interest, as shares rose by 5.53 percent (15 cents) to $2.84.

The after-tax profit on the transaction totalled $47.2 million, a 14.2-percent increase from last year.

In 2017, 1425 of its more than 16,500 guestrooms underwent extensive renovations as part of Mantra’s expansion plans. One of Mantra’s newest additions will be the 100-guestroom Mantra Southport Sharks, which is set for a 2018 opening.

Buyer: Accor, rather large hotel group! In November 2017 the sale was approved by the Australian Competition & Consumer Commission, given that Accor is also a major owner/manger of hotels in the country.

THPT Comment: Ironically it was rumoured that Mantra were looking for an acquisition in Europe in 2017, to give them a more global reach…well I guess they have that now, with Accor!