Mantra heads to Hawaii

Travel Bulletin - - STATE OF THE INDUSTRY -

MANTRA Group, the ac­com­mo­da­tion busi­ness which grew out of the for­mer Stella Travel & Hos­pi­tal­ity, has gone from strength to strength since it be­came sep­a­rately listed

on the Aus­tralian Stock Ex­change in 2014. The com­pany’s brands in­clude Mantra, Pep­pers and Break­free, with the share price per­form­ing well and CEO Bob East en­joy­ing a high pro­file as a newly ap­pointed di­rec­tor of Tourism Aus­tralia. Last month Mantra spread its wings into the US for the first time, with a US$52.5 mil­lion deal to take over the Ala Moana con­do­minium ho­tel. Boast­ing more than 1,000 rooms, the prop­erty is ad­ja­cent to the well known Ala Moana shop­ping cen­tre in Honolulu. East said the ac­qui­si­tion was con­sis­tent with Mantra Group’s strat­egy to selec­tively ex­pand its pres­ence in key off­shore re­gions by pur­chas­ing prop­er­ties in des­ti­na­tions favoured by Aus­tralian trav­ellers. Fur­ther ac­qui­si­tions are ex­pected by the group, which raised the fund­ing for the Ala Moana deal via a $100 mil­lion share place­ment, amount­ing to just over 10% of its is­sued cap­i­tal. That means there’s a fair chunk of change in the kitty to fund so-called “pipe­line op­por­tu­ni­ties”.

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