Art Series Hotel Group is set to be acquired by Mantra Group for AUD$52.5 million, with the hotel names and brand set to stay in operation.
Mantra Group is acquiring Art Series from the Deague Group and the transaction includes seven properties across Australia.
Joining Mantra Group will be The Cullen, Prahran, Melbourne VIC; The Larwill Studio, North Melbourne VIC; The Olsen, South Yarra, Melbourne VIC; The Blackman, St Kilda Road, Melbourne VIC; The Chen, Box Hill, Melbourne VIC (which is currently in the final stages of construction and is set to open in November 2017); The Johnson, Spring Hill, Brisbane QLD; and The Watson, Walkerville, Adelaide SA.
Each hotel is inspired and dedicated to Australian contemporary artists, infusing the namesake artist’s works and personality throughout the hotel to create unique art-inspired experiences.
Mantra Group says settlement of the acquisition is expected to be completed in late 2017, subject to closing conditions.
One upcoming hotel, however, wasn’t included in the deal and this also won’t mean the Deague Group will stop developing hotels, HM can reveal.
Speaking exclusively to HM, Deague Group CEO, Will Deague, said the acquisition does not include the Deague Group’s upcoming ‘six star’ hotel at Brisbane’s Howard Smith Wharves and more projects will be developed in the future.
“Going forward we will continue to develop high end boutique hotels such as the current 165 room hotel under construction on the river in Brisbane as well as residential and commercial assets,” he told HM.
Deague said he was proud of what Art Series had accomplished since he came up with the concept of the company in 2001.
“Over the past decade we have been deeply passionate about growing the Art Series Hotel Group around Australia and hosting millions of art-inspired experiences for guests,” he said.
“The hotels have achieved countless accolades and awards and are regularly noted on the hottest hotel lists Australia and overseas.
“We are very proud of what our team has achieved and are excited to hand over the brand to Mantra Group who will build the brand to future success.”
Deague told HM Mantra Group have confirmed it will be business as usual for Art Series Hotel Group and all agreements with namesake artists will remain unchanged and the new owners will focus on fostering new relationships with artists for future hotel properties.
It is on the back of the strength of the brand in the market, Mantra Group says, that each hotel will continue to operate under the Art Series brand and more properties could be added to the portfolio.
Mantra Group CEO, Bob East, said the deal represents a sizeable addition to Mantra Group’s already expansive Australian portfolio.
“This acquisition enhances our existing portfolio and presents a unique opportunity for Mantra Group to increase its footprint across three key locations (Melbourne, Brisbane and Adelaide) in a single transaction,” he said.
“And we have arrangements in place that should deliver new Art Series properties into the future.
“This is a rare opportunity to acquire a collection of exceptional hotels and one which is expected to make a significant contribution to Mantra Group’s business.
“These hotels have been operated to the highest standards by a passionate and dedicated team, and we are delighted to welcome such iconic and favoured properties to our growing network of hotels and resorts.
“We look forward to working with the owners, team members and guests to ensure a smooth transition.”