Mantra boss gives continuity promise
THE boss of Mantra’s new owner has ruled out major job losses as a result of the $1.2 billion acquisition.
AccorHotels Asia Pacific chairman and CEO Michael Issenberg flew into the Gold Coast yesterday, after a longhaul flight from Paris via Sydney, to visit staff and Mantra properties as the deal took effect.
The acquisition of Mantra by the Paris-based hotel giant creates an accommodation juggernaut with 18,000 staff and more than 330 hotels and resorts in Australia.
Mr Issenberg, whose association with the Gold Coast goes back to the 1980s, said the addition of Mantra made sense for Accor.
He said there was not much overlap between the two businesses, with Mantra focusing on apartment-style products, many in Queensland, and Accor on business hotels in capital cities.
“When you put the two together it makes for a remarkable network throughout Australia,” he said.
Mr Issenberg said Accor’s purchase of Mirvac’s management rights’ business six years ago enabled the company to gain an understanding of the industry.
“If we hadn’t acquired that business first and gotten to understand it, we probably would have been more hesitant,” he said.
“We think it is a very good business model.
“It is different to what we do in most places, but something that once we get our arms around it, we can take it to other parts of the world with some success.”
He said he intends for Mantra’s head office to stay at 50 Cavill Ave, Surfers Paradise, and to be “almost a separate business unit” within Accor with a managementrights focus.
“The intention absolutely is to keep the office here,” he said.
“Because, not only do the people live here but the expertise is here.
“Also there is a large call centre we will keep here, so that will all stay.”
Mr Issenberg ruled out slashing staff, apart from natural attrition.
“Anytime there is a merger or acquisition, there are some people who decide they will work somewhere else. But, we do not anticipate major job losses,” he said.
Mr Issenberg said he believes the Gold Coast will continue to grow, partly due to the growing health and education industries and sporting infrastructure.
“Beside the great beaches, the infrastructure created over the years is almost unreplicable,” he said.
“For another leisure destination to catch up to the Gold Coast is almost impossible. So, that will continue to grow and we want to be a part of that.”
He said he first visited the Gold Coast after arriving in Australia in 1985.
Later, he regularly undertook Christmas and New Year holidays in the Palm Beach and Currumbin area.
“It was only when my wife, who is from Queensland, and I, moved to Singapore about 10 years ago that we stopped coming to the Gold Coast for Christmas/New Year.”