The deal, which is worth AU$29.5 million (US$22.7m), will see Mantra take ownership of four Outrigger properties in Australia: Outrigger Surfers Paradise, Outrigger Twin Towns Resorts Coolangatta, Outrigger Little Hastings Street Resort & Spa Noosa, and Boathouse Apartments by Outrigger Airlie Beach. It also plans to generate additional capital to fund new resorts.
“The Outrigger acquisition is a natural fit for Mantra Group, extending the group’s footprint in key leisure destinations,” said Mantra’s CEO, Bob East.
“This acquisition is complementary to our existing portfolio and, together with future pipeline growth initiatives, is expected to supplement Mantra Group’s strong organic growth with incremental earnings. We look forward to working with the owners, guests and team members to make the transition as smooth as possible.”
The deal will add a total of 984 rooms to Mantra’s current inventory of approximately 11,000 units, most of which are located in Australia.
For Outrigger, the deal will enable it to concentrate on its strategy of expanding in Asia and the Indian Ocean. The Hawaiian company, which has its Asian headquarters in Phuket, is in the process of developing new luxury resorts in the Maldives, Vietnam and on the Chinese island of Hainan.
Mantra’s acquisition of Outrigger Australia is expected to be completed by June 2015.