Luxury hotel coup with $52.5m deal
GOLD Coast accommodation provider Mantra Group has opened the purse strings for an artful purchase of a family-owned luxury hotel group.
Mantra has paid $52.5 million for the Art Series Hotel Group, adding to its portfolio the management rights to 1000 hotel suites and apartments across seven hotels in Melbourne, Adelaide and Brisbane.
Investors responded positively to the news, sending shares 5.53 per cent or 15c higher to close at $2.84.
The purchase was made from the Deague Group, controlled by Melbourne’s wealthy Deague family, which built the hotel chain up in the past eight years.
Each hotel is named after a contemporary Australian artist with that artist’s work and personality used to create an art-inspired experience.
The hotel group has attracted attention for its colourful marketing campaigns such as at The Watson in Adelaide, named after Tommy Watson, where patrons were offered the opportunity to pose nude or semi-nude for a portrait by the hotel’s resident artists.
Mantra chief executive Bob East said the purchase of the 4-star and 5-star luxury hotels was a significant boost to its offering, particularly in the Melbourne market where
five of the hotels are located.
“We will find new customers through these acquisitions but a lot of our existing customers will love it, too,” he said.
“We know the customers will love it because it is a great asset. They are in prime locations such as The Olsen at South Yarra, in Melbourne, and they are really funky. It is a really good deal.”
Mr East said the purchase would capitalise on growth in the Melbourne accommodation market.
“The Melbourne market is a very good performer,” he said. “Melbourne is very well situated.”
Mantra said it will fund the acquisition, with settlement due to occur later this year.
The Surfers Paradisebased company will deliver its full-year results on August 29.
The sale of the Art Series hotels was negotiated by Resort Brokers’ agents Trudy Crooks and Tim Crooks.