AccorHotels takes Mantra

MANTRA Hotels directors have unanimously recommended shareholders accept a $1.18 billion takeover offer, which will see the Australian hospitality group become part of the global Accor network ( TD breaking news).

AccorHotels ceo Sebastien Bazin said the deal would underpin the group’s long-term growth in the Asia Pacific region.

“Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to implement our successful hotel portfolio in Australia,” he said.

Mantra’s range includes 28 Peppers hotels, 75 Mantra properties and 24 operating under the BreakFree brand.

The company has more than 5,500 employees.

The transaction, which will be voted on by shareholders at a meeting scheduled for Mar 2018, is subject to regulatory approvals including from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

Mantra chairman Peter Bush said the offer represented an attractive proposition.

“Mantra’s strong expertise in apartments, in particular, and our presence in resort locations are very complementary to the AccorHotels operation in Australia and New Zealand”.

He said customers would benefit from the “market leading expertise” of both groups.