Good deal for everyone
Positive reaction to Accor’s Mantra takeover
BUSINESS leaders in Cairns believe an Accor take over of the Mantra Group in a billion dollar deal can only be positive for Far North Queensland.
French hotel giant Accor is a leading operator in Australia with 214 hotels including Pullman Cairns International, Pullman Reef Hotel Casino, Cairns Harbour Lights, Novotel Cairns Oasis Resort, Ibis Styles Cairns, The Reef House Palm Cove, Pullman Palm Cove Sea Temple Resort and Spa, The Sebel Palm Cove Coral Coast and Pullman Port Douglas Sea Temple Resort and Spa.
The $1.18 billion proposed takeover, due to be voted on by shareholders in March, will result in 11 hotels added to the Accor group in the Far North.
But Cairns Chamber of Commerce president Nick Loukas does not believe it will create a monopolist scenario for the region.
“I think there’s enough competition here to avoid that. There’s still major hotels that won’t be in that group,” Mr Loukas said. “I can only see positives. The Accor group is a very reputable, successful French group and we welcome the investment.
“Everyone will be keeping an eye that they do the right thing and I’m confident that they will.”
Far Northern Mantra hotels include Mantra Trilogy, Mantra Esplanade, BreakFree Royal Harbour, Mantra Amphora, Peppers Beach Club and Spa, Mantra Aqueous on Port, Mantra Heritage, Mantra in the Village, Mantra on the Inlet, Mantra PortSea and Peppers Beach Club.
Tourism Tropical North Queensland chief executive Pip Close said she understood Mantra directors had recommended shareholders accept the offer.
In a statement to the ASX, Mantra said Accor had offered $3.96 in cash for each Mantra share, which were worth $3.88 yesterday morning.
“With Accor’s marketing reach and prowess, it should benefit owners who hold investments in Mantra as well as visitors who will have a wider choice under a global brand,” Ms Close said.
“Pricing will depend on future brand positioning and yield management, which is dictated by consumer demand, so it is unlikely there will be major price increases.”