French hotel giant Accor has acquired Australia’s largest hotel group, Mantra, for $1.2 billion, in a deal that will take at least three years to settle.
The French-based operator was granted access to carry out due diligence on the ASX-listed Mantra Group in October 2017.
AccorHotels will now capture Mantra's 138 hotels in Australia, New Zealand, Indonesia and Hawaii, in a deal that has taken 12 months to complete.
Mantra currently manages over 200 hotels in Australia including hotel chains Sofitel, Novotel, Pullman, Mercure and Ibis among others, and also offers a range of short-term accommodation options with its Onefinestay business.
“We are delighted to have come to an agreement to acquire the Mantra Group,” AccorHotels chairman Sébastien Bazin said.
“This operation will underpin our long-term growth in the Asia Pacific region.”
“Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia.”
Properties in Mantra’s portfolio range from luxury accommodations and coastal resorts to serviced apartments and key leisure destinations, under three key brands – Peppers BreakFree and Mantra.
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Mantra will continue to operate as a separate, Queensland-based business with AccorHotels stating it had no plans to rebrand Mantra.
“Mantra’s brands and properties perfectly complement the AccorHotels network and will enable us to provide new destinations and new experiences for our guests,” AccorHotels Pacific chief operating officer Simon McGrath said.
“Our innovation in economic business models, brands and customer initiatives has fuelled 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.”
Mantra currently boasts 22,000 rooms and more than $8 billion in assets under management, with an annual turnover of $660 million.
“AccorHotels is one of the world’s leading hotel operators and we trust that our business will be in good hands,” Chairman of Mantra Peter Bush said.
“The combined business will be an important part of Australia’s strong and growing tourism market and its customers will benefit from the market-leading expertise of both groups.”
Mantra shares will be delisted from the ASX on Friday, June 1.