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Mantra Group to Sell Management Letting Rights

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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.

Mantra 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.

“The 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 strategy.

“It’s a process of keeping our brand standards consistent,’’ Mr East added.

At the 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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