French accommodation company Accor  has made a bid to buy Mantra Group, a hotel and resort company that operates 128 properties with more than 21,500 rooms across Australia, New Zealand, Indonesia and Hawaii.  Accor is offering the equivalent of A$3.96 a share, well up on Mantra’s closing price of $3.23 on Friday.

Mantra confirmed the approach this morning and has granted Accor access to its books. “The discussions are incomplete and remain subject to a number of conditions,” including approval the boards of both companies.  

In the year to June 30, 2017, Mantra Group boosted its net profit by more than 22% to $45.6m due primarily, said CEO Bob East, to contributions from “six new property acquisitions supported by strong revenue growth from the key markets of Sydney, Melbourne, ACT, and Sunshine Coast.”

Mantra brands include Peppers, Mantra and BreakFree.

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