Art Series Hotel Group is set to be acquired by Mantra Group for AUD$52.5 million, with the hotel names and brand set to stay in operation.
Joining Mantra Group will be The Cullen, Prahran, Melbourne VIC; The Larwill Studio, North Melbourne VIC; The Olsen, South Yarra, Melbourne VIC; The Blackman, St Kilda Road, Melbourne VIC; The Chen, Box Hill, Melbourne VIC (which is currently in the final stages of construction and is set to open in November 2017); The Johnson, Spring Hill, Brisbane QLD; and The Watson, Walkerville, Adelaide SA.
Speaking exclusively to HM, Spice’s sister publication, Deague Group CEO, Will Deague, said the acquisition does not include the Deague Group’s upcoming ‘six star’ hotel at Brisbane’s Howard Smith Wharves.
And the deal won’t mean the Deague Group will stop developing hotels either.
“Going forward we will continue to develop high end boutique hotels such as the current 165 room hotel under construction on the river in Brisbane as well as residential and commercial assets,” Will Deague, CEO, Deague Group told HM.
“We are very proud of what our team has achieved and are excited to hand over the brand to Mantra Group who will build the brand to future success.”
In the meantime, it will be “business as usual” for Art Series hotels under Mantra, the group’s executive director Michael Moret-Lalli told SpiceNews.
But he revealed that there are agreements in place that should see Mantra expand on the Art Series’ portfolio in the future with new developments.
When asked if Mantra would be acquiring any other new properties in the near future, Moret-Lalli confirmed they currently have “18 new properties, representing almost 4,000 rooms, in our acquisition pipeline, with another six properties offering over 1,000 rooms at well advanced stages of negotiations”.
The latest deal represents a sizeable addition to Mantra Group’s already expansive Australian portfolio, said Mantra Group CEO Bob East.
“This acquisition enhances our existing portfolio and presents a unique opportunity for Mantra Group to increase its footprint across three key locations (Melbourne, Brisbane and Adelaide) in a single transaction.”
“We look forward to working with the owners, team members and guests to ensure a smooth transition.”
Settlement of the ‘Art Series Acquisition’ is expected to be completed in late 2017, subject to closing conditions customary for an acquisition of this nature.
Meanwhile, the acquisition means Event Hospitality and Entertainment Limited (EVT) will no longer have a marketing and distribution agreement with Art Series Hotels from November, 2017.
Instead, EVT will focus on the continued growth and development of QT Hotels and Resorts.