Search

×

Mantra acquires Art Series hotels across Australia

Mantra Group on Friday announced it has entered into an agreement with the Deague Group to acquire the Australian-owned Art Series Hotel Group for approximately A$52.5 million (US$41.6 million).

The acquisition from Melbourne’s wealthy Deague family will see seven luxury hotels (representing more than 1,000 guest rooms and including a number of conference and event facilities, restaurants and luxury hotel-style amenities) added to Mantra Group’s portfolio of 128 properties and more than 21,500 rooms in properties under management across Australia, New Zealand, Indonesia and Hawaii.

Mantra Group said it funded the acquisition of the leasehold, management rights and Art Series brand with cash and debt facilities.

Launched in 2009, Art Series hotels, with five hotels in Melbourne and one in Adelaide and Brisbane, are inspired by and dedicated to Australian contemporary artists, infusing the namesake artist’s works and personality throughout the hotel. Each business will continue to operate under the Art Series brand. The hotels are currently being managed by Event Hospitality, the managers behind Rydges and QT branded hotels.

The Deague family will retain its 128-room Schaller Studio hotel in Bendigo and is building a 165-room luxury hotel on the river in Brisbane as part of the Howard Smith Wharves redevelopment.

“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,” said Mantra Group Chief Executive Officer Bob East.

Settlement of the ‘Art Series Acquisition’ is expected to be completed in late 2017, subject to closing conditions customary for an acquisition of this nature.

Comment