Growth by acquisition is a Mantra
AccorHotels has solidified its position as New Zealand’s largest foreign accommodation operator after acquiring Australian-based Mantra Group in a $1.2 billion deal.
The acquisition includes the Mantra, Peppers, BreakFree and Art Series brands, which manage
138 hotels in Australia, New Zealand, Hawaii and Bali.
AccorHotels is best known for operating Novotel and Ibis hotels.
The French group’s Asia-Pacific chief executive, Michael Issenberg, called the deal ‘‘the latest chapter in the strong growth story of AccorHotels in the region’’.
‘‘Since our launch with Novotel Sydney on Darling Harbour in
1991, AccorHotels has become the largest hotel group in the Pacific, and Australia has always played a key role in that story.’’
AccorHotels will operate more than 900 hotels and resorts throughout the Asia-Pacific region after the deal is closed, 330 of them in Australia.
In New Zealand, AccorHotels operates 42 hotels, nine of which come from the Mantra acquisition.
Worldwide, the company overseas 4300 hotels, resorts and residences in 100 countries.
Chief operating officer Simon McGrath said the deal would create new opportunities for the company’s staff, partners and guests.
‘‘We believe that tourism is critical to the economic growth of the region and future job creation and this deal will allow us to further develop the industry.’’
McGrath said the company would continue to develop and grow the existing Mantra, Peppers and Breakfree brands while potentially introducing new ones as well.
He said there was a lot of new investment coming into New Zealand cities, particularly Auckland and Queenstown.
McGrath identified Mantra Group’s partnerships with 10,000 strata-title owners, where individuals were able to purchase rooms and suites, as a key characteristic of the business’s innovation.
While AccorHotels operates the largest number of hotels in New Zealand of any company, the biggest owner of hotels is New Zealand’s CP Group.
According to a 2016 JLL report, CP Group owned 17 hotels, equating to a market share of 8 per cent. It said 11 of CP Group’s hotels were run by AccorHotels, including the Sofitel hotels in Auckland and Wellington.
The Mantra Group leadership team will continue to be based in its Gold Coast office, reporting to chief executive Bob McGrath who has led the company since 2007.