Home' Hotel Management : HM APRIL 2015 Contents Outrigger Enterprises Group has exclusively
told HM it is not abandoning Australia, despite
the sale of the company’s operations in the
country to Mantra Group.
The company says under new company
standards, the existing properties did not meet
the criteria of being located directly on the
beach and it was looking at re-entering the
market with new acquisitions.
“ Today’s transaction does not include in any
way the sale of the Outrigger brand name nor
the right to use the Outrigger brand in future in
Australia,” Outrigger Enterprises Group’s Director
of Public Relations, Nancy Daniels, told HM.
“ The Outrigger brand continues to be
owned by Outrigger Enterprises Group, based
“ This is a strategic realignment of our
portfolio to better match the Outrigger
Resorts brand which focuses on premier
“ W hile our Australia portfolio included
properties located in coastal destinations,
they did not meet the criteria of being located
directly on the beach.
“ This move by no means is an indication that
Outrigger is leaving Australia. We are not in any
way selling or franchising our brand. We have a
strong connection with the people of Australia.
Our newly established Australia Regional Sales
and Marketing office in Sydney, led by Andrew
Gee, demonstrates our commitment to the
Australian market, which is key for us globally.
“Outrigger will continue to seek out
properties along the vast Australia coastline that
fit the new Outrigger Resort brand standards,”
She added that as part of the agreement,
with the exception of a few strategic personnel
who will remain with Outrigger, all Outrigger
employees at the OHRA office and affected
properties will be retained by Mantra.
OUTRIGGER NOT ABANDONING AUSTRALIA
Boathouse Apartments by Outrigger Airlie Beach
Mantra has been revealed as the buyer of
Outrigger’s Australian operations, including
the management of four properties, for
Mantra reported to the ASX it had entered into
an agreement to acquire Outrigger Hotels and
Resorts Australia Pty Ltd, subject to customary
completion adjustments and conditions.
It’s the second time a Mantra-related company
has bought Outrigger in Australia. Back in
August 2006, former owners MFS purchased the
management rights of Outrigger’s then 13 existing
resorts and six under construction in Australia and
New Zealand for AUD$120 million. The properties
joined the then labelled Stella Hospitality business
and added 2000 rooms to the business.
Comprising a total of 984 keys under
management, plus freehold title to Managers Lot
real estate (comprising restaurants, conference
facilities and other common areas), the Outrigger
Acquisition presents Mantra Group with a
significant investment opportunity, and is aligned
with Mantra Group’s growth strategy to deliver
Properties in the deal include Outrigger
Surfers Paradise, Outrigger Twin Towns Resorts
in Coolangatta, Outrigger Little Hastings Street
Resort and Spa in Noosa and the Boathouse
Apartments by Outrigger Airlie Beach.
“The Outrigger Acquisition is a natural fit for
Mantra Group, extending the Group’s footprint
in key leisure destinations,” Mantra Group CEO,
Bob 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.
“The properties are exceptionally well located.
Our customers will be thrilled with the additions
and our team is looking forward to welcoming the
new team members and owners.
“To acquire properties in Airlie Beach, Noosa
and Gold Coast in a single transaction is very
rare, these areas represent the most popular and
emerging tourism hubs in Australia.
“The Properties are well suited for domestic
leisure guests, inbound guests and conference
and incentive participants. This represents the
ideal mix for hotel assets in this region.
“The Gold Coast and Noosa properties are
large operations with multiple food and beverage
and conference facilities. Our corporate and
conference clients will be delighted with the
acquisition,” he said.
At the same time as the announcement,
Mantra Group launched a fully underwritten
institutional placement to raise approximately
AUD$50 million to assist in funding the
Outrigger Acquisition as well as providing
Mantra Group with additional capital to fund
identified pipeline opportunities.
Settlement of the Outrigger Acquisition is
expected to complete by June 2015, subject to
closing conditions customary for an acquisition
of this nature.
Mantra acquires Outrigger’s Australian resorts
Acquired by Mantra: Outrigger
Surfers Paradise is one of four
properties set to change brands
8 HM The Business of Accommodation
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