MANTRA Group has firmed up its presence in its home market on the Gold Coast with the acquisition of the management rights to Chevron Renaissance.
The deal marks the fourth property addition on the Coast since the beginning of the year, including the $20 million deal for the 77-level Soul tower.
Mantra has not disclosed the price paid for Chevron Renaissance, which is being rebranded Mantra Towers of Chevron.
However, the property was acquired from the Picone family which snared the rights to the tower during the 2009 property slump for $9 million.
Chevron Renaissance is the largest apartment hotel in Surfers Paradise with 711 apartments across three towers.
The latest deal lifts Mantra's Gold Coast property portfolio to 12 on the Gold Coast under the Peppers, Mantra and BreakFree brands, with recent additions also including former Outrigger properties in Surfers Paradise and Twin Towns at Tweed Heads.
"This is an important acquisition that firmly places Mantra as the hotel brand of choice on the Gold Coast," says Mantra CEO Bob East.
"We have great faith in this region as a popular tourism destination for Australians and international visitors. The upcoming Commonwealth Games in 2018 is set to position the region for future growth."
Mantra has ambitions to grow further on the Gold Coast, which has been enjoying strong tourism numbers over the past two years. The company is already the dominant player in the city's tourism market.
"Mantra has confidence in the Gold Coast market and as such will continue to explore opportunities that enhance shareholder value," says East.
Mantra Towers of Chevron will likely target a family demographic, compared to Soul which operates as a five-star resort boasting premium room rates.
"We have continually demonstrated our expertise in this space most recently with the acquisition of Peppers Soul Surfers Paradise, creating a successful five-star integrated resort experience with a two hat restaurant," says East.
"I am confident our team will have similar success with Mantra Towers of Chevron and our guests will love the addition."
The Surfers Paradise-based Mantra Group posted a $36.2 million profit in FY15, well ahead of its prospectus forecast of $32.6 million.
The company, Australia's second-largest hotel and accommodation group, delivered the result from a 9.7 per cent lift in revenue to $498.8 million, aided by expansion in both the corporate and leisure travel markets.
Earlier this month, the company's foundation shareholders private equity groups CVC Capital Partners and UBS - sold their remaining stake in the company for $277.8 million as expected following the release of the latest full-year results.
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