MANTRA RIDES THE MINING BOOM

MANTRA RIDES THE MINING BOOM

THE mining boom and major events have helped boost Mantra Group’s revenue by five percent in the first quarter this year.

The Gold Coast-based hotel chain enjoyed a seven per cent growth in revenue per available room (RevPAR) compared to the same period last year.

Mantra Group CEO Bob East (pictured) attributes increased patronage of the company’s capital city hotels to activities relating to the mining sector, major events and a revival in business travel.

Major events and festivals also resulted in gains for regional properties, East says.

The impact of the mining boom in Queensland and Western Australia helped boost revenue for Mantra in Brisbane and Perth. RevPAR growth in Perth was 31 per cent while Brisbane improved 9 per cent.

The good news wasn’t confined to these states. Six Mantra properties in the Melbourne CBD properties showed a 4.2 per cent RevPAR growth and Adelaide logged a 10.5 per cent increase.

The Gold Coast experienced a 5 per cent increase in room nights sold on the corresponding period last year. Easts says better summer weather than last year and events like Magic Millions helped create the boost.

The Chinese New Year celebrations in Tropical Far North Queensland made for exceptional demand for Mantra Hotels in the region – a 218 per cent increase. The region enjoyed a 17 per cent boost in revPAR on the previous year for the first quarter.

“It was encouraging to see our CBD properties perform ahead of the market either in occupancy, RevPAR or rate growth, as well as regional areas such as North Queensland which also performed well during what is traditionally the low season,” says East.

The company says the Melbourne hotels had 97 per cent occupancy during the Australian Open, with similar numbers during the Grand Prix.

In Adelaide, the Tour Down Under helped the company reach a 25 per cent increase in occupancy in January, while the Clipsal 500 made an impact in March.

Sydney didn’t fare so well, maintaining its RevPAR in the first quarter to the same level as the previous year. The city is experiencing a drop in rates for 5-star product, which has a negative impact on mid-range hotel RevPAR.

Mantra is Australia’s second-largest accommodation provider and is 90 per cent owned by CVC Asia Pacific and UBS, who have placed their stake on the market.

Get our daily business news

Sign up to our free email news updates.

 
Unpacking equity: Finding your funding fit
Partner Content
Armed with a growing business and a great opportunity, a business owner’s next challe...
Australian Business Growth Fund
Advertisement

Related Stories

Big-name retailers among buyers interested in scooping up Godfreys Group

Big-name retailers among buyers interested in scooping up Godfreys Group

Buyers have begun circling embattled vacuum cleaner retailer G...

More tradies chasing fewer jobs drives Hipages to $3.7m profit

More tradies chasing fewer jobs drives Hipages to $3.7m profit

More tradies competing for fewer jobs has propelled online tradie m...

Scentre Group retailers post record sales in 2023 as foot traffic spikes

Scentre Group retailers post record sales in 2023 as foot traffic spikes

A sharp increase in foot traffic at Scentre Group’s (ASX: SCG...

Former DHL Express boss John Mullen to replace outgoing Qantas chairman

Former DHL Express boss John Mullen to replace outgoing Qantas chairman

Qantas Airways (ASX: QAN) has named John Mullen the new chairman to...