Jobs in Mantra deal

AccorHotels chief’s plans for Coast

ACCORHOTELS Australian boss has flagged the opportunity for more jobs, not fewer, if the French giant’s $1.2 billion purchase of Surfers Paradise Mantra Group goes ahead.

The Mantra board last week approved the sale, at $3.96 per share, and urged other shareholders to do the same at a vote in March.

Approvals must also come from the Federal Court, Foreign Investment Review Board and Australian Competition and Consumer Commission before the deal goes through.

AccorHotels Pacific chief operating officer Simon McGrath said the company had been looking at Mantra, and its core business at the Gold Coast, long before the news broke last week.

“Mantra is a business we have admired for some time and their cultural values very much align with ours,” he said.

“They have achieved excellent market standing and quality operations in areas that are very complementary to our business.”

“We have great confidence in Australia’s tourism market and the Gold Coast is one of the country’s most dynamic holiday destinations. “The Commonwealth Games will be the largest ever event to take place on the Gold Coast and it is going to be an incredibly exciting time for the community.”

Mantra has about 5500 staff, many on the Coast, in its Cavill Ave headquarters and across its properties. Mr McGrath said Accor hoped to expand the business if the sale proceeded.

“AccorHotels has operated in Australia for 27 years and our primary focus has always been on our guests and our employees,” he said.

“With this transaction we are excited by the prospects of providing further employment opportunities while enhancing the customer experience.”

Mantra shares were trading at $3.895 yesterday, lower than the 52-week highs they reached last week and slightly lower than what they’ll be paid at if the Accor deal goes ahead.