A merger of Australia’s two biggest accommodation providers would create a local hotel giant with a national portfolio of more than 300 hotels, a dozen or so brands and in excess of 50,000 rooms – about five times bigger than its nearest competitor, franchisor Choice Hotels.
AccorHotels continues to build its global empire with a move on Australian hotel group, Mantra.
Last week AccorHotels acquired a 50% stake in the share capital of the Orient Express brand, and plans to develop a new collection of hotels under the Orient Express banner.
The French hotel group has been granted due diligence access to determine if a A$1.2 billion (US$934m) deal can be agreed and unanimously recommended by the Mantra board,
The companies are in discussions and the deal, if it proceeds, is subject to approval from both the Mantra and Accor boards, as well as the foreign investment regulator in Australia.
Mantra Group is the operator of the Mantra, Peppers and Breakfree hotel brands, with more than 21,000 rooms across 125 properties in Australia, Hawaii and Indonesia. Accor operates 4,200 hotels across the world, with brands including Novotel, Mercure, Sofitel, Raffles, Fairmont and IBIS.
A merger of Australia’s two biggest accommodation providers would create a local hotel giant with a national portfolio of more than 300 hotels, a dozen or so brands and in excess of 50,000 rooms – about five times bigger than its nearest competitor, franchisor Choice Hotels.
Mantra CEO Bob East told the Gold Coast Bulletin, “The business wasn’t for sale, but if parties make an approach then it’s incumbent on the board to act in the best interests of shareholders.
“Obviously this is something that has presented itself to us - it’s not a situation where were looking for suitors.”
Analysts believe Accor’s bid could face competition if other international hotel groups are attracted by Mantra’s sale value.