Accor Hotels has announced a near €1-billion deal to acquire the Australia-based Mantra Group.

Mantra, one of Australia’s largest hotel and resort groups, operates 127 properties and more than 20,000 rooms in hotels and serviced apartments across Australia, New Zealand, Indonesia and Hawaii.

Accor has agreed to pay AUD1.3 billion (€0.9 billion) for the group in a deal which will go to Mantra shareholders for approval.

Sébastien Bazin, Accor Hotels chairman and chief executive, said: “We are delighted to have come to an agreement to acquire the Mantra Group. This will underpin our long-term growth in the Asia Pacific.”

He said Mantra’s portfolio would offer “additional accommodation formats and a strong customer base” to complement Accor’s existing properties in Australia.

Mantra chairman Peter Bush said: “Accor Hotels is one of the world’s leading hotel operators. We trust our business will be in good hands.”

He added: “Mantra’s expertise in apartments and our presence in resort locations are very complementary to AccorHotels’ operations in Australia and New Zealand.

“The combined business will be an important part of Australia’s growing tourism market.”

Mantra operates three hotel brands, Peppers, Mantra and BreakFree, and manages a range of accommodation services including guest relations, restaurants and bars, and conference centres.  It employs 5,500 staff.

Accor aims to complete the deal, which is subject to regulatory approval, before the end of this year and complete the transaction by the end of the first quarter of 2018.