CVC backs Australia's Mantra in Asia expansion

Mantra CEO Bob East said the firm's plans to expand into Asia were crucial in securing support from the PE company. "There is constrained supply growth in Australia, there are not a lot of hotels being built here." he told The Australian. "This is a natural evolution for our business."

Mantra's three-year expansion plan will involve opening up to 10 new properties, offshore and in Australia, each year. In December it will open its first Asian property in Bali. The 4.5-star Mantra Nusa Dua, located 10 kilometers from Bali's Denpasar Airport, will have 172 guest rooms.

The expansion plans are being adopted after CVC failed to sell off Mantra earlier this year. The PE firm put its 40% stake in the company up for auction in March and it was expected to sell for up to $520 million, with Archer Capital and CHAMP Private Equity reportedly interested. However, no deal materialized.

Last year Mantra reportedly recorded a turnover of A$429 million ($454.3 million). The group employs 3,500 people.

Earlier this week, CVC recorded the largest-ever loss on a single PE investment in Asia when its A$1.8 billion equity stake in Nine Entertainment, the beleaguered Australian TV network, was wiped out as part of a debt restructuring deal with its lenders.

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• Topics
• Australasia
• Expansion
• Southeast Asia
• Buyout
• Real estate
• Investments
• CVC Capital Partners
• Real estate
• Australia
• Southeast Asia