Mantra Group shareholders have voted overwhelmingly to approve the $1.2 billion sale of Australia’s second biggest hotel and resort operator to French accommodation giant Accor.
Ninety-six per cent of shareholders approved the arrangement, paving the way for the deal to proceed after earlier green lights from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board.
The acquisition of Mantra Group by Accor, already the country’s biggest accommodation operator, gives the Paris-based company 15 per cent of the local market through 370 hotels and 53,000 rooms across a dozen brands.
Accor will take control of Mantra Group on May 23.
The ACCC gave the go-ahead for the takeover in March after finding little overlap between the two groups, which operate in different parts of the market.
”Accor’s business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and Ibis,” ACCC chairman Rod Sims said.
“Mantra’s focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
”The combined Accor-Mantra will still compete with other international and national chains, as well as many independent hotel and accommodation providers.”
Accor recently sold a 55 percent stake in its hotel investment platform AccorInvest for almost $7 billion, with CEO Sebastien Bazin saying the proceeds would go towards funding the Mantra deal.
It’s not yet certain whether Manta Group CEO Bob East, who is currently the chair of Tourism Australia, will remain with the company. Mr East has led Mantra since 2007.
AccorHotels, which was one of the busiest operators last year, has opened its Sofitel Sydney at Darling Harbour and will also operate the new MGallery by Sofitel at Chadstone shopping centre in Melbourne.
It recently opened the new $140 million William Inglis hotel, another MGallery by Sofitel, at Sydney’s Warwick Farm.