Scenic Hotel Group CEO Karl Luxon and Mitchell Corp's Margaret Davidson

Christchurch-based hotel management company Scenic Hotel Group has acquired fellow Kiwi accommodation business Mitchell Corp, as it seeks to diversify its business model post-pandemic.

With 40 years of industry experience under its belt, Scenic Hotel Group aims to deliver economies of scale for Mitchell Corp, which comprises Golden Chain, Mainstay Hotels, Ezibed, and other iconic programmes including Go Kiwi.

“Like us, the Mitchell Corp business is quintessentially Kiwi with strong ties to community and business,” Scenic Hotel Group CEO, Karl Luxon, said.

“This is most evident in the independent, family-run hotel and motel businesses who have long been the backbone of New Zealand tourism.” 

The acquisition is in line with Scenic Hotel Group’s strategy which is focused on growth and diversification, and aims to bring Kiwi operators together for the better of their businesses and New Zealand tourism.

“We will continue to work closely with Mitchell Corp over the coming weeks to ensure a seamless integration and are excited by future opportunities as New Zealand re-opens to the world,” Luxon said.  

Luxon had begun talks with Mitchell Corp’s Matt Standing last year prior to his passing after a long illness in November. Negotiations later continued with the liquidator EY.

“Time was needed to conduct due diligence on the Mitchell Corp portfolio,” Luxon said. 

“We also needed time to engage with property owners and operators.”

While the last two years have challenged the business, and the sector as a whole, Luxon says this period of upheaval has created an opportunity.

“Like so many, Scenic Hotel Group has taken some very hard hits during the pandemic, however we have also used this time to reset our business strategy for the very changed world we are moving into,” he said.

“This has meant embracing new technologies, reflecting the shift in customer preferences on the back of huge social change and we are excited about the opportunities to share this with our all business partners including the Mitchell Corp brands.”