Following Ala Moana buy, Australia's Mantra Group seeks more U.S. assets

Australia's Mantra Group bought Outrigger Enterprises Group’s interest in Honolulu’s Ala Moana Hotel for $52.5 million earlier this year. Since the acquisition, the Ala Moana has reportedly seen record occupancy and room rates in its first three months of operation under the Mantra banner, so the company is looking to acquire more Hawaiian assets. 

Mantra boss Bob East told the Gold Coast Bulletin that the group is seeing more offshore opportunities, and would like to make more U.S. purchases. 

Still, with Australia’s hotel scene booming, East said that Mantra will remain focused on its homeland, with new large-scale hotels on the Gold Coast set to enter its portfolio in 2019. “We believe the Gold Coast will continue to be Australia’s most popular resort destination,” he said. “We are looking at resorts of significant scale that are new-build opportunities. Most of our growth will be in Australia and New Zealand.”

Mantra chairman Peter Bush yesterday said Mantra’s share price had risen 78 percent since listing in June 2014. The company, which posted FY16 net profit of $37.1 million, an increase of 2.7 percent, reaffirmed its FY17 EBITDA guidance of between $101 million and $107 million and net profit of between $51 million and $55.5 million.