Mantra Group’s sale to AccorHotels has reached its next hurdle. According to the Gold Coast-based hotel group, the Australian Competition and Consumer Commission—the nation’s competition regulator—will review the portfolio sale before the $1.2-billion deal is finalized.
Mantra’s board unanimously approved Accor’s bid to acquire all shares of the company last month at $3.96 each. The group is awaiting its shareholders’ vote on the offer, which is reportedly scheduled in March.
Mantra just settled its $52.5-million acquisition of the Art Series Hotel Group on Nov. 21, 2017 from the Deague Group. The purchase added 1000 hotel suites and apartments within seven hotels in Melbourne, Adelaide and Brisbane to Mantra’s portfolio. Mantra’s portfolio buy piqued investor interest, as shares rose by 5.53 percent (15 cents) to $2.84. The after-tax profit on the transaction totaled $47.2 million, a 14.2-percent increase from last year.
The hotel company also acquired six new properties in 2017 plus an additional three in the past six months. This year, 1425 of its more than 16,500 guestrooms underwent extensive renovations as part of Mantra’s expansion plans. One of Mantra’s newest additions will be the 100-guestroom Mantra Southport Sharks, which is set for a 2018 opening.