Mantra Group’s sale to AccorHotels has passed its latest hurdle. The $930-million sale was approved by Australia's Foreign Investment Review Board and could be finalized as early as May.
The FIRB's statement of "no objection" under the Foreign Acquisitions and Takeovers Act clears the way for Mantra's shareholders (and the Federal Court of Australia) to approve.
AccorHotels announced its bid for Mantra last October, seeking to capitalize on skyrocketing tourism across the country. Australian hotel groups have been rushing to increase the country's hotel stock as demand continues to rise. Inbound tourism reached a record 7.9 million in 2016, up 9 percent over the previous year. International visitor spending also rose to record levels, achieving $4.6 billion in 2016.
AccorHotels already has more than 200 hotels in Australia. Mantra, meanwhile, is Australia's second-largest accommodation provider and operates 136 properties with more than 24,000 rooms across Australia, New Zealand, Indonesia and Hawaii.