Australian corporate and leisure accommodation
operator, the Mantra Group, is selling the management letting rights
(MLRs) to some of its non-core properties, as part of an ongoing
strategy of acquisition and divestment.
Group CEO Bob East said the divestment of the properties in New
Zealand, Northern NSW, the Gold and Sunshine Coasts, 1770 and
Tropical North Queensland represented just 2.5% of room stock in
the company’s portfolio and less than 2% of profit.
“As one of Australia’s leading operators of leisure and
corporate accommodation we are always looking at ways to improve
our business,’’ Mr East said.
“Part of this process
is continually evaluating our portfolio to ensure we have the best
product suite for the changing market, which means divesting out
of properties which are not a strategic fit.
properties we are divesting do not align with our brand strategies
and, generally speaking, are smaller buildings more suited to
individual operators,’’ he said.
The MLR sale is a
continuation of a consolidating process which began 18 months ago
for the group when it brought 10 hotel brands together under the
three key brands of Peppers, Mantra and Breakfree.
“We said from the outset that our plan would be to evaluate which
properties fitted our strategy, to divest out of those which
didn’t and seek new investment opportunities,’’ Mr East said.
While Mantra Group does not need to divest in order to
acquire new properties, the move paves the way for the company to
bid on larger projects that better fit its brand and growth
“It’s a process of keeping our brand
standards consistent,’’ Mr East added.
request of owners, Mantra Group said it may retain the names of
some buildings under franchise agreements.
Properties being divested: New Zealand – BreakFree Highview
Apartments, BreakFree on the Waterfront. Sunshine Coast and 1770,
BreakFree Marcoola, BreakFree South Pacific; Mantra Pavillions
1770. Gold Coast and Northern NSW - BreakFree Enderley Gardens,
BreakFree Equinox, BreakFree Maldives, BreakFree Moby’s, BreakFree
Paradiso, BreakFree Rays Resort, BreakFree Seamark, BreakFree St
Tropez, BreakFree Surfers Plaza, Aruba, Aloha. Tropical North
Queensland – BreakFree Royal Harbour, Mantra Links.
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