Australia-based Mantra Group has agreed to a A$1.18 billion ($920 million) buyout bid from French hotel company Accor SA.
Accor owns 4,200 hotels around the world, while Mantra runs 125 hotels in Australia, Hawaii and Indonesia. Mantra Group’s brands include Mantra, Peppers and Breakfree, and Accor's brands include Novotel, IBIS and Mercure.
The transaction would be the second-biggest in Australia’s hotel sector and the largest buyout of an Australian entity by French interests, according to Thomson Reuters data. The deal will give the combined group about 50,000 rooms, which translates to 11 percent of Australia’s hotel market, according to IBISWorld statistics.
The number of visitors to Australia has risen 9 percent in the past financial year to hit a record 7.9 million. Spending by international visitors also reached a record of $40.6 billion, according to The New York Times.
