Paris-based AccorHotels has bid A$1.18 billion (US$920 million) for Australia-based Mantra Group – a deal that would combine Australia’s two biggest hotel owners, according to reporting from Reuters.
Accor, Australia’s biggest hotelier, offered A$3.96 per share on Friday. The total offer will be worth A$4.02 per share if a 6 cent final dividend paid in 2017 is included, Mantra said in a statement to Reuters.
Speculation for a Mantra takeover was brewing as early as March, though at that time both IHG and an Asian investor were rumored to be pursuing the Australian-based hotel company.
Mantra Group also consolidated its multi-branded portfolio into a new single consumer brand, Mantra Hotels, in June.
Australia has been hot this past year with record numbers of international tourists funneling into the country, with Asian visitors at the head of that pack. Not surprisingly, the tourism-related investment pipeline reflects that, standing at A$29 billion (US$22 billion), up from A$17 billion (US$13 billion) three years ago, with two-thirds of the investment in accommodation, according to Deloitte Tourism and Hotel Market Outlook.
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