By James Wilkinson at AHICE in Melbourne
Mantra Group CEO Bob East has told delegates at the fifth annual Australasian Hotel Industry Conference and Exhibition (AHICE) in Melbourne yesterday (May 1) the company was looking at a second attempt at listing on the Australian Stock Exchange.
He said the company had been “enticed” earlier this year to look at the IPO (initial public offering) market on the back of strong potential for growth and it remained firmly on the radar.
“We are growing at circa 20 per cent per year and we have that pace moving forward,” he said. “But we are probably entering a phase now where the potential is outstripping the capital.
“Whilst we have a lot of cash and a warchest to acquire more hotels, I think in Australia and particularly up in Indonesia, we are reaching a period of unprecedented new supply coming into the market and it’s an unprecedented opportunity for operators to get in.
“So, for us going to the capital market and looking at an IPO, is a consideration,” East said.
He said business was solid at present and that was another key factor in a potential listing.
“The leisure market broadly is strong,” he said.
AHICE 2014, held at Grand Hyatt Melbourne, attracted a record of just under 400 leading hoteliers, suppliers, consultants and travel leaders.