Beating out rivals reported to include Accor and Wyndham, Mantra Group announced it has entered an agreement to acquire Outrigger Hotels & Resorts Australia for A$29.5 million (US$22.5 million). The deal, which is subject to customary completion adjustments and conditions, is expected to be finished by June.
Outrigger’s Australian portfolio includes 984 keys at four properties: Outrigger Surfers Paradise; Outrigger Twin Towns Resorts, Coolangatta; Outrigger Little Hastings Street Resort & Spa, Noosa; and Boathouse Apartments by Outrigger Airlie Beach. The Australian quoted Mantra CEO Bob East as saying Surfers Paradise, Coolangatta and Airlie Beach likely would be rebranded under the Mantra banner while the Noosa resort would be rebranded under the Peppers name.
Mantra announced it is launching a fully underwritten institutional placement to raise approximately A$50 million (US$38.2 million) to help fund the Outrigger acquisition.
“The Outrigger acquisition is a natural fit for Mantra Group, extending the group’s footprint in key leisure destinations,” East said. “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.”