Mantra Group snaps up Art Series Hotel Group for $52.5 million
The Mantra Group is expanding, acquiring the Art Series Hotel Group for $52.5 million.
The acquisition gives Mantra a well-known luxury hotel brand with over 1000 hotel suites and apartments, conference and event facilities and luxury hotel amenities.
All of these are located in cultural hubs in key Australian capital cities.
The deal delivers Mantra The Cullen in Prahran, Melbourne, The Larwill Studio in North Melbourne, The Olsen in South Yarra in Melbourne, The Blackman in St Kilda Road, Melbourne, The Johnson in Spring Hill, Brisbane and The Watson in Walkerville, Adelaide.
Mantra, which controls the Peppers, Mantra and Breakfree hotel brands, will also get The Chen in Box Hill, Melbourne, now in the final stages of construction which is set to open in November 2017.
The acquisition will be funded via cash and existing debt facilities.
Mantra bought the Art Series Hotel Group from Melbourne's wealthy Deague family.
Mantra’s director Michael Moret-Lalli said his group had agreements in place that would see it expanding on the Art Series’ portfolio in the future with new developments.
He said the group was looking at expanding its footprint, telling Spice News it had “18 new properties, representing almost 4,000 rooms, in our acquisition pipeline, with another six properties offering over 1000 rooms at well advanced stages of negotiations”.
Mantra Group CEO Bob East said the acquisition was in line with Mantra’s strategy.
“This acquisition enhances our existing portfolio and presents a unique opportunity for Mantra Group to increase its footprint across three key locations (Melbourne, Brisbane and Adelaide) in a single transaction,” Mr East told Spice News.
“We look forward to working with the owners, team members and guests to ensure a smooth transition.”
Settlement of the Art Series acquisition is expected to occur in late 2017, subject to closing conditions customary for an acquisition of this nature.
by Leon Gettler, August 10th 2017
