Mantra Group, the Australian hotel company, has entered into an agreement to acquire the Art Series Hotel Group.
The deal with the Deague Group is worth approximately AU$52.5 million (US$41.6m) and will see Mantra take control of seven luxury hotels featuring more than 1,000 guest rooms. As a result, Event Hospitality & Entertainment, which manages hotel brands including Rydges, QT and Atura, will terminate its marketing and distribution agreement with Art Series Hotels from November 2017.
For Mantra Group, the acquisition will boost its existing portfolio of 128 properties and more than 21,500 rooms across Australia, New Zealand, Indonesia and Hawaii.
The seven hotels added to Mantra’s collection include The Cullen, The Larwill Studio, The Olsen, The Blackman and The Chen, all of which are in the Melbourne area, plus The Johnson in Brisbane and The Watson in Adelaide. Each of these hotel names reflects the Australian contemporary artist to which the property is dedicated, with their namesake artist’s works being displayed throughout the hotel.
As well as artistic rooms and hallways, art libraries, art tours and the opportunity to rent art utensils, the hotels feature glass-bottomed pools, outdoor decks, modern fitness centres, large communal spaces and “boutique” function areas.
“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’s CEO, Bob East. “This is a rare opportunity to acquire a collection of exceptional hotels and one which is expected to make a significant contribution to Mantra Group’s business.
“We look forward to working with the owners, team members and guests to ensure a smooth transition,” he added.
The acquisition of Art Series Hotel Group is expected to be completed in late 2017, following which each property will continue to operate under the Art Series brand. This will join Mantra Group’s existing brands: BreakFree, Mantra and Peppers.