A wholly owned subsidiary of Mantra Group Limited has entered into an agreement to acquire ALM Management Services LLC (“ALMMS”), which operates the landmark Ala Moana Hotel in Honolulu, Hawaii. The acquisition will see Mantra Group purchase:
- The high-performing condominium hotel business, comprising 1,086 guest rooms;
- Freehold title to reception, administration areas, and all car parking;
- Freehold title to 6 food and beverage outlets; and
- Freehold title to 9 function rooms, totalling 1,350m2
The condominium hotel operating model is similar to the Management and Letting Rights business model that represents half of Mantra Group’s current portfolio of 126 hotels and resorts across Australia, New Zealand, and Indonesia.
The latest in a string of large scale acquisitions by Mantra Group, the purchase of Ala Moana Hotel is consistent with the company’s strategy to selectively expand its presence in key offshore regions, with a focus on destinations favoured by Australian travellers and other key international markets.
“The iconic Ala Moana Hotel has consistently been a strong performer as a holiday and business events destination of choice,” said Mantra Group CEO, Mr Bob East.
"This acquisition is a truly exciting advancement for Mantra Group and a solid platform from which to enter a new offshore market. It’s a very substantial property that is well aligned to Mantra Group’s core business, expertise and growth strategy,” Mr East said.
ALMMS is an affiliate of leading Hawaiian-based hotel company Outrigger Enterprises Group, which operates a highly-successful portfolio of 38 hotels, condominiums and resorts in some of the world’s most iconic beachfront destinations.
“Ala Moana Hotel has been operated to the highest standards by a truly dedicated team under Outrigger’s management, and we are delighted to welcome such a landmark property to our growing network of hotels and resorts,” Mr East said.
Mantra Group will retain all current hotel staff and management, with settlement expected to occur at the end of July, 2016.
Mantra Group is a leading manager and marketer of hotels and resorts in Australia, New Zealand and Indonesia, operating three well-known brands – Peppers, Mantra and BreakFree.The Group successfully listed on the ASX in June 2014 and in its first year as a public company was elevated to the ASX200. With 126 properties, over 19,000 rooms, and more than 5,000 team members, Mantra Group is the largest Australian-based hotelier. www.mantragroup.com.au