Update on Mantra growth & acquisition

Australia-based hotel and resort operator Mantra Group had its AGM this month. Mantra Group chairman Peter Bush sheds light on the Group’s growth and the AccorHotels takeover.

During the AGM, Mr Bush underlined the Group’s FY2017 results, which were in line with market guidance and saw a total revenue of $689.0 million representing a 13.7 percent increase on FY16, and acknowledged yet another year of growth since the Group listed on the Australian Securities Exchange on 20 June 2014.

“Underlying NPAT was $47.2 million, which is up 14.2 percent on FY16, and underlying EBITDAI was $101.2 million representing a 12.7 percent increase on FY16,” he shared.

“This strong performance was driven by acquisitions and was supported by strong revenue growth from the key markets of Sydney, Melbourne, ACT, and Sunshine Coast, a $4.9 million increase in revenue from our Central Revenue & Distribution segment, improved occupancy levels, higher average room rates, an increase in the total number of rooms available and improved efficiencies.”

[pro_ad_display_adzone id=”15046″ align=”left”]With the takeover transaction between AccorHotels and Mantra still subject to approvals, Mr Bush also provided a brief update relating to the Scheme Implementation Agreement with AccorHotels for the proposed acquisition by AccorHotels of the Mantra Group business, which was announced to market on October 12.

The Scheme Implementation Agreement contemplates the acquisition by AccorHotels of all the shares in Mantra Group and remains subject to a number of customary conditions including the approval of Mantra’s shareholders and the Federal Court of Australia, as well as regulatory approvals including from Australia’s Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC).

A spokesperson for ACCC explained their role in the process to Accomnews.

“Basically, we have a role in any mergers that might substantially lessen competition, which is separate from the Foreign Investment Review Board. Generally speaking, we look at competition levels in the market. If we undertake a formal review we see comments from people in the market place on what’s going on, and if we have no concerns we waive it through. If we do have concerns we put out a document called a statement of issues which outlines our concerns and then businesses can try and amend their deal to address those concerns.