Australian small- to medium-sized hotel operator, Mantra Group, may be set to join the Accorhotels family, following reports that the French hotel giant has made a non-binding A$1.2billion (US$933 million) bid on the company.
Mantra’s management has stated that discussions are still ongoing and that neither boards of Mantra and Accorhotels have yet granted approval to a binding agreement, the Sydney Morning Herald reports.
“If any proposal is agreed, the proposal will be subject to regulatory approvals and other conditions to be determined. There is no certainty that an agreement will be reached or that the proposal will be implemented,” the statement to the Australian Securities Exchange (ASX) said.
The possible acquisition is the latest in a trend that is seeing industry giants acquire smaller operators as they seek to expand their footprint. Accorhotels notably acquired FRHI Hotels and Resorts last year, bringing the Canadian hotel management company’s Fairmont, Raffles and Swissotel brands under its umbrella.
While discussions remain up in the air regarding the Mantra acquisition, such a move would likely see the eventual incorporation of the Mantra+ loyalty programme into Accorhotels’ Le Club scheme.
Mantra Group is one of Australia’s largest hotel operators. Earlier this year, the company opened Sydney Airport’s third on-site hotel, the Mantra Hotel at Sydney Airport.
Meanwhile Accorhotels is set to open three hotels in Australasia this month, the Sofitel Sydney Darling Harbour, Pullman Brisbane Airport and the Sofitel Wellington