Resort king Mantra snaps up Outrigger’s Australian hotels
RESORT kings Mantra have bought out the last of Outrigger’s Australian hotels in a deal worth almost $30 million.
The Gold Coast-based Mantra Group yesterday ((SUBS 19-3)) announced details of a $29.5 million agreement to take over the last four resorts of Outrigger Hotels and Resorts Australia.
It is the end of an era for Outrigger, the Hawaiian-based resort chain which was once a major player in the Australian accommodation sector.
The deal will involve rebranding of Outrigger properties in Surfers Paradise, Coolangatta, Noosa and Airlie Beach.
It will add another 984 rooms to the stable of Mantra, already the country’s largest resort operator.
Mantra previously acquired 11 Outrigger hotels in 2007.
Mantra CEO Bob East said the acquisition was a natural fit for Mantra Group, extending the group’s footprint in key leisure destinations.
“Noosa is going through a real resurgence at the moment and Surfers Paradise is another really strong market,” he said.
“To acquire properties in Airlie Beach, Noosa and the Gold Coast in a single transaction is very rare, these areas represent the most popular and emerging tourism hubs in Australia.
“The Properties are well suited for domestic leisure guests, inbound guests and conference and incentive participants.
“This represents the ideal mix for hotel assets in this region.
“Our corporate and conference clients will be delighted with the acquisition.”
Outrigger remains a strong performer in the Hawaiian hotel scene and has also been active in other parts of Asia-Pacific.
Settlement of the deal is expected by June.
Mantra will fund the acquisition through a $50 million share placement priced at $3.05 a share. Mantra last traded at $3.24.
Source: Courier Mail - 19th March 2015
