Gold Coast tourism leaders buzz at AccorHotels’ takeover of Mantra

TOURISM bosses are salivating about the prospect of European hotel giant Accor adding the Gold Coast’s Mantra properties to its global booking system. Here’s how the Gold Coast wins from the $1.1 billion deal.

GOLD Coast tourism bosses are salivating at the prospect of global hotel giant Accor adding the city’s Mantra Group properties to its marketing and booking system.

If Paris-based AccorHotels’ $1.18 billion bid — which Mantra Group’s board has accepted — is finalised by regulators and shareholders next year it will see Mantra’s 22 Coast hotels join Accor’s stable.

AccorHotels’ footprint of 4200 hotels, resorts and residences — plus 10,000 private homes — spans 95 countries and includes leading brands Raffles, Sofitel, Novotel, Mercure and Ibis.

Gold Coast Tourism chairman Paul Donovan said the boost from having Mantra’s Gold Coast properties marketed via Accor’s booking system would be significant.

Gold Coast Tourism chairman Paul Donovan: “I don’t see anything other than additional value.” Picture: Scott Fletcher

“That is going to result in additional tourists. If you are anywhere in the world and have an Accor frequent users card then all of a sudden Accor might have special deals and we’ll be part of that.

“I don’t see anything other than additional value that a global brand like that will bring to an organisation like Mantra,” Mr Donovan said.

“The other big thing is it is recognised the Gold Coast has a premier company that has caught the eye of a global brand like Accor.

“How good is it that a brand inspired and developed by a Gold Coaster is now big enough to get on the world stage with Accor? It all comes back to the work done by Bob East as CEO.”

Since Mr East’s appointment as CEO in 2007, he has grown Mantra Group’s 41 properties to about 115 in Australia plus another dozen in New Zealand, Bali and Hawaii.

Mantra Group has more than 110 hotel properties in Australia, including 22 on the Gold Coast such as Mantra Circle On Cavill in Surfers Paradise.

Surfers Paradise Alliance CEO Mike Winlaw said Mantra had provided great marketing support and economic injection into the Surfers Paradise precinct over the years: “The announcement of Accor as a global company taking the reins will provide a solid platform for both a domestic and international tourism boost for the Gold Coast economy.”

Broadbeach Alliance CEO Jan McCormick said exposure from the Accor deal for the city’s tourism and commercial reputation would be outstanding.

Broadbeach Alliance CEO Jan McCormick: “It will help with the reputation of the Gold Coast as well in terms of the getting the city’s brand out there.” Picture: David Clark

“It opens up more global opportunities for all the properties on the Gold Coast. It will help with the reputation of the Gold Coast as well in terms of the getting the city’s brand out there.”

Gold Coast Mayor Tom Tate said: “We need to be cautious as any deal is yet to be finalised but the Mantra group’s story is quintessential Gold Coast — a world-class hotel portfolio built through vision and hard work, led by a highly competent board.

Gold Coast Mayor Tom Tate: “The Mantra Group’s story is quintessential Gold Coast.” Picture: Jerad Williams

“There is no doubt the Gold Coast punches above its weight in the commercial world,’’ Cr Tate said.

Broadbeach councillor Paul Taylor, an AccorHotels member, said: “Accor is a massive organisation — it shows a lot of confidence in the Gold Coast.”

AccorHotels member and Broadbeach councillor Paul Taylor: “It shows a lot of confidence in the Gold Coast.” Picture: Scott Fletcher

Mantra Group is understood to have least several hundred staff working out of its head office in Surfers Paradise.

But Bond University associate professor of finance Colette Southam said Mantra’s head office staff shouldn’t be too uncomfortable: “When it’s a cross-border acquisition like this it’s not like you bring in a bunch of people who don’t understand the local context.”

Dr Colette Southam, associate professor of finance at Bond University business school on the Gold Coast says the offer from AccorHotels to buy Mantra Group had a “quite nice” premium built in.

A spokesperson for AccorHotels, which has over 10,000 staff in Australia and a Sydney head office, wouldn’t comment on how much duplication there would be with Mantra management or other positions: “It is too early for us to be commenting on this issue as the transaction is still subject to regulatory approvals.”

Ms Southam said the premium price being offered by AccorHotels to make the acquisition was “quite nice” and showed Accor had a lot of faith in Mantra’s potential for growth.

Mantra accommodation

SURFERS PARADISE

•Breakfree Beach Point

•Mantra On View Hotel

•Mantra Circle on Cavill

•Mantra Sun City

•Peppers Soul

•Breakfree Acapulco

•Breakfree Cosmopolitan

•Breakfree Imperial Surf

•Breakfree Longbeach

•BreakFree Moroccan

•BreakFree Peninsula

•Mantra Crown Towers

•Mantra Legends

•Mantra Towers of Chevron

•Mantra Wings

•Paradise Centre Apartments

BROADBEACH

•Breakfree Diamond Beach, Broadbeach

•Mantra Broadbeach on the Park, Broadbeach

•Peppers Broadbeach, Broadbeach

•Mantra Sierra Grand, Broadbeach

TWEED

•Mantra Twin Towns, Tweed Heads

COOLANGATTA

•Mantra Coolangatta Beach, Coolangatta

SOUTHPORT

•Management of Mantra Residences, long-term leases in three Southport Central towers