Mantra Group to stay on Gold Coast after sale to AccorHotels was finalised today

AFTER months of formalities, hospitality giant Mantra Group was finally acquired by AccorHotels today. Here’s what it means for Mantra staff and its Cavill Ave headquarters.

Mantra chief executive officer Bob East rings the bell to mark Mantra Group's listing on the Australian Stock Exchange in 2014.

MANTRA Group’s head office will remain on the Gold Coast despite its sale to AccorHotels settling this afternoon.

Shareholders were today paid their portion of the group’s $1.2 billion sale to their Paris-based counterparts and the company’s MTR code is set disappear on the Australian Stock Exchange for the last time tonight.

The announcement this afternoon also sees off Bob East’s tenure as head of the company he floated and grew into a billion-dollar entity, and it’s also the last day for fellow executives Stephen Hobson and Tomas Johnsson.

The deal includes the Mantra, Peppers, BreakFree and Art Series brands, representing 138 hotels in Australia, New Zealand, Hawaii and Bali.

Michael Issenberg, chairman and CEO of AccorHotels Asia Pacific said the deal would see Accor operate more than 330 hotels and resorts actross Australia and more than 900 acorss the Asia Pacific region.

“The Mantra Group is the latest chapter in the strong growth story of AccorHotels in the region,” he said in a statement.

“Since our launch with the Novotel Sydney on Darling Harbour in 1991, AccorHotels has become the largest hotel group in the Pacific, and Australia has always played a key role in that story.”

WHAT’S NEXT FOR BOB EAST?

Mantra CEO Bob East. Pictur: Glenn Hampson

While the new owner is yet to reveal its detailed plans for the Mantra brand, it said Mantra Group’s ”leadership team” would stay on the Gold Coast.

AccorHotels South Pacific chief operating officer Simon McGrath said the deal would result in “new opportunities”.

“The Mantra Group brands will enhance AccorHotels’ portfolio and create new opportunities for our people, partners and guests,” he said.

“We believe that tourism is critical to the economic growth of the region and future job creation and this deal will allow us to further develop the industry.”

The Mantra Group leadership team will continue to be based in the Gold Coast office, reporting to Mr McGrath, in line with all other AccorHotels Pacific business units, a statement from Accor said.

“I’m looking forward to getting my feet under the desk at the Gold Coast, working with the team and getting to know the detail of this business,” Mr McGrath said.

“We welcome our Mantra colleagues to AccorHotels and together, we will benefit from our shared values, expertise and entrepreneurial spirit.”

Peppers Salt Kingscliff will be run by Accor.

Almost 95 per cent of Mantra shareholders voted in favour of the sale, which has been approval by the Australian Competition and Consumer Commission, the Foreign Investment Review Board and Federal Court.

Mantra shareholders including Mr East will receive payments totalling $3.96 per share, including a special dividend and consideration for the sale.

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Mantra Peppers Soul at Surfers Paradise joins the Accor group after today.

Mr East has said he and his family plan to remain on the Gold Coast and that he will stay on as Tourism Australia chairman.

He’ll take on a new board, chairing Wollongong-based Experience Co, a listed adventure tourism and leisure company with market capitalisation of $355 million that runs white water rafting, hot air ballooning and canyoning operations, as well as 18 skydiving sites in Australia and three in New Zealand.

Yesterday he said he was “immensely proud” of what he’d done in the business.

“It’s been an enjoyable journey for me leading the team since 2007 through to our float on the ASX in 2014 and now closing this deal with AccorHotels,” he said.

“ I have enormous belief in the business and the team here is looking forward to working with Simon and AccorHotels to continue this success.”

Mantra last traded on the ASX last Wednesday, after the deal received final court approval and trading was suspended indefinitely.

The deal sees the nation’s two largest hotel companies combine with a portfolio of about 300 properties.

It will be the second Gold Coast listed company in six weeks to be sold off after Billabong shareholders accepted a $208 million offer from US-based Boardriders Inc in March.

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