Mantra Group boss Bob East says "shareholders are very positive" about the $1.3 billion merger of the Australian hotel operator with French giant Accor, a deal which will reshape Australia's hotel landscape.

Speaking to The Australian Financial Review after Mantra Group entered into a binding agreement to sell all its shares to Accor at $3.96, Mr East said his discussions with shareholders indicated they were in favour of the deal which will require their support to proceed.