Mantra Group has agreed to acquire the Australian-owned Art Series Hotel Group from the Deague Group for $52.5 million.
The acquisition will see seven Art Series hotels and more than 1,000 guestrooms located in Melbourne, Adelaide and Brisbane added to Mantra Group’s portfolio of 128 properties and 21,500 guestrooms across Australia, New Zealand, Indonesia and Hawaii. Each business will continue to operate under the Art Series brand.
The sale was handled by Resort Brokers’ agents Trudy Crooks and Tim Crooks. “That brand will be retained by Mantra Group which, now with 135 properties, is our largest Australian-owned and locally-based hotel operator,” Trudy Crooks said in a statement. Settlement is expected to be finalized in late 2017, subject to closing conditions customary for an acquisition of this nature.
The seven-hotel portfolio includes:
- The Cullen, Prahran, Melbourne, Victoria
- The Larwill Studio, North Melbourne, Victoria
- The Olsen, South Yarra, Melbourne, Victoria
- The Blackman, St. Kilda Road, Melbourne, Victoria
- The Chen, Box Hill, Melbourne, Victoria (which is currently in the final stages of construction and is set to open in November 2017)
- The Johnson, Spring Hill, Brisbane, Queensland
- The Watson, Walkerville, Adelaide, South Australia
Mantra Group's portfolio includes three brands Peppers, Mantra and BreakFree in the full-service hotels, apartments, resorts and retreats sectors.
According to the company’s reports in the beginning of 2017, Mantra Group’s expansion plans boosted profit levels in the second half of 2016. Following the signing for five Australian hotels in November 2016 and various international expansion projects in the U.S. and Indonesia, revenue increased by 26 percent to $30.5 million in H2 2016, compared to $24.3 million in the same period in 2015.