Mantra ponders sale as it looks overseas

Mantra Hotels and Resorts has confirmed it is "exploring its options" as rumours circulate of an impending sale.

Although chief executive Bob East denied reports the firm was already on the market, he admitted a sale to the right buyer could help drive Mantra’s overseas expansion plans.

“Broadly speaking, it looks like a good time to take it to the next level,” he told Travel Today. “There are 350,000 hotel rooms being built in Asia while there are not many more left in Australia.”

The group has already been approached by several firms, he revealed. But he said Mantra would open itself up to offers before entering into exclusive talks.

East confirmed discussions had started with several banks over handling the sale, but stressed no appointment had as yet been made with the firm also considering other options, such as a “transaction between shareholders.”

“It may not be a sale process,” he insisted.

However, he admitted that, in the event of a sale, a US or Asian buyer would be “most likely” with the business too big for a local sale.

“We’ve got a tremendous opportunity to export our business model overseas,” he said.

In December, East revealed Mantra was considering ways to enter the Asian market but effectively ruled out a traditional joint venture.

“There must be a strategic investment opportunity where we would buy an entire business or someone invest in us,” he told Travel Today, adding that he had seen too many JVs “go bad.”

Mantra is currently jointly owned by private equity firm CVC Asia Pacific, investment bank UBS and management shareholders.