C O M P A N Y O V E R V I E W
In Partnership With:
THE
SKY
IS THE LIMIT:
The rapid rise of Australia’s fastestgrowing hotel group Written by Sarah Megginson Produced by Glen White
MANTRA GROUP
Young, agile, and on a growth trajectory that could give you whiplash, Mantra Group is blazing its own unique path in the competitive hotel space. While recent acquisitions in Asia and Hawaii are undeniably exciting, it’s clear that the main focus is to cement its reputation as Australia’s go-to hotel destination
F
or some, it boils down to convenience: a microwave to heat up meals, a small kitchenette to prepare breakfast, and enough beds and space for the family to comfortably cohabitate without driving each other mad. For others, it’s all about the luxury: of fluffy robes and feather pillows, of opulent furnishings, and all the other trimmings that come with decadent five-star service. Others still are happy to do without all the mod cons in exchange for a great value price-point. The minds behind Mantra Group are all-too-aware of the many diverse desires of the modern traveller. They seek to appeal to the masses but
4
November 2016
at the same time, they don’t want to risk cannibalising one brand with another – which is why they have cleverly developed just three distinct yet complimentary brands, Mantra, Peppers and BreakFree. “We have a footprint that includes all key gateway city and iconic leisure destination around the country and
“Australia is still our core market and where we see most of our growth in the next 12-18 months” – Tomas Johnsson, chief operating officer
H O S P I TA L I T Y
we’re starting to grow internationally, and our aim is to cover what most of the consumer bases want with three brands. It starts with our value brand BreakFree; we then have Mantra, offering something for everyone with a broad selection of accommodation
Tomas Johnsson Chief Operating Officer
ranging from hotel rooms to apartment-style product, which is a real competitive advantage; and ends with our premium brand, Peppers,” explains Tomas Johnsson, Chief Operating Officer, Mantra Group. “We’re a bit different to traditional hotel groups as we are based on
Tomas joined Mantra Group in July 2007 as the Executive Director of Operations. In March 2016 Tomas moved into the role of Chief Operating Officer and is now responsible for the overall accountability for Operations, Sales, Marketing, Revenue, Distribution and Digital functions across the Group. Tomas has over 25 years’ experience in senior management roles in the tourism industry and is currently on the board of The Arts Centre Gold Coast. Prior to joining Mantra Group, Tomas was the Senior Asset Manager for General Property Trust responsible for its leisure portfolio including Sheraton Four Points Darling Harbour, Ayers Rock Resort and Voyages Resorts. Tomas has also held senior management roles with Mirvac and Rydges Hotels. Tomas is a member of the Australian Institute of Company Directors.
w w w. m a n t r a g ro u p . c o m . a u
5
JB HI-FI SOLUTIONS
JB Hi-Fi Solutions is a major supplier to the Hospitality industry, servicing a number of National contracts within multinational Hotels, Motels and apartments throughout Australia and New Zealand. JB Hi-Fi Solutions offer an extensive range of innovative and quality hospitality specific products, to assist you to deliver the best experience for your guests. Our range includes televisions, IPTV, bar fridges, appliances, conference room equipment, AV systems, phone systems, wireless networks and security systems. We are also a major provider of Marketing and Loyalty club incentive programmes rewards.
1300 746 752 jbhifisolutions.com.au
Panels, Video and IPTV Audio and Visual Complete Refurbishment or New Installations Promotion, Loyalty & Gift cards National Coverage Finance and Warranty Options
FOR BUSINESS
H O S P I TA L I T Y
the Gold Coast, compared to our competitors, who usually have a head office in the USA, London or France. We are a proudly Australian company and we think we are a little more dynamic than other organisations in that we have grown from scratch and really created our own success.” Through its three distinct hotel brands, the group offers upwards of 21,000 rooms each night in high-rises and hotels scattered throughout Australia, New Zealand, Indonesia and Hawaii. In recent years the company has adopted an aggressive growth strategy with a firm goal of becoming Australia’s leading hotel group. It’s clearly working: in 2006 it boasted just 41 properties within their stable, and this number has trebled to more than 126 properties today. “Part of why we have been so successful is down to the way in which we leverage our core operating model,” shares Michael MoretLalli, Director of Acquisitions. “A large part of our business, is our own balance sheet risk. We own strategic real estate within
Michael Moret-Lalli Director of Acquisitions Michael joined Mantra Group in June 2008 as Regional General Manager for Southern Gold Coast and Northern NSW regions, and was appointed as the Director of Acquisitions in 2010. Michael is responsible for driving the expansion of Mantra Group’s Peppers, Mantra and BreakFree brands into the Australian, New Zealand and South-East Asia markets. Michael has more than 20 years’ experience in the hospitality sector including fund and asset management roles over the Park Hyatt Sydney and Sheraton Mirage Resorts, and various senior management roles for Accor Hotels, Outrigger Hotels and Resorts and Southern Pacific Hotel Corporation. Michael holds a Bachelor of Business from The University of Queensland.
w w w. m a n t r a g ro u p . c o m . a u
7
MANTRA GROUP
our hotels and management rights Mantra Group portfolio. that anchor us as a business and “We have structured our corporate we are structured largely like an office to operate a centralised services owner-operator as a result.” platform, which provides for a lot of The ability to be flexible whilst financial savings at the hotel level of driving three brands forward with a the business. There are not a lot of $25 million-plus annual marketing extra cost structures in back of house, spend is as functions such “absolutely a as payroll, sales result of our and marketing owner operator and HR are all leaning,” Moretdone corporately Lalli says. and supplied “As an to each hotel,” organisation, we Johnsson says. are very agile “This translates and deploy our to some own capital to really strong secure hotel efficiencies and operating rights – Tomas Johnsson, chief operating officer the result for for ourselves, or our investors is work with third party owners under a a lot of cost savings, all because we management agreement, depending structure ourselves differently. We on the opportunity,” he adds. are also perceived as being the best Another key to success has strata managers in this country and been the ability to drive strong in the world, with some systems that cost efficiencies through a are very unique. All of this means we centralised approach to managing can offer our partners and our third the dozens of hotels within the party owners a really compelling
“We pride ourselves on our strong culture – there’s a real can-do attitude that is evident amongst our staff”
8
November 2016
H O S P I TA L I T Y
w w w. m a n t r a g ro u p . c o m . a u
9
Our No1 Partnership VANITY GROUP and MANTRA GROUP together have redefined the customer experience with best in class national hospitality amenity programs. At Vanity Group we deliver the highest quality products, with attention to detail and distinctiveness, which makes us a leader in global cosmetics.
8+
million units supplied annually to Mantra Group
150 + years
of combined beauty industry expertise
Represented in
38 +
countries
�The strategic partnership we have forged together is a foundation for long term differentiation and growth. Vanity Group have upgraded and enhanced our guest experience by introducing strategically aligned Australian retail brands through our national hotel amenity program.� Tomas Johnsson Chief Operating Officer Mantra Group
vanitygroup.com
H O S P I TA L I T Y
the group has come a long way since its humble beginnings. Though the business has undeniably grown in leaps and bounds, Johnsson counters that its core culture and “people ethos” remains as it was back in the day, when the group’s head office occupied a single floor of office space. Today, with more than 5,000 staff internationally – including around 450 at the group’s head office on the Gold Coast – Johnsson estimates that around one in six employees has been story that leads to excellent returns; our average 50%+ gross operating profit margins at hotel level is best in class, which at the end of the day what investors are looking for.” The business now operates the second-largest network of accommodation (by number of rooms) properties in Australia, with Mantra Group’s recent growth leading to its listing on the ASX in June 2014. In its first year as a public company, it was elevated to the ASX 200 ¬– proof if ever it was needed that
“We’ve very agile in our approach and we have more fun than the average hotel company” – Tomas Johnsson, chief operating officer
w w w. m a n t r a g ro u p . c o m . a u
11
www.vittoriacoffee.com
H O S P I TA L I T Y
with the company since the beginning. “First and foremost, we have a genuine culture. Many of us started here early in the piece when the business was formed, and so we know, like and trust each other as
a significant core of people that has worked with each other through those early years and has gone through many challenges together. The growth spurt and success that has come about from that, is really the result of
colleagues and friends. We knew we were building something prior to the curve and we’ve gone through those early years together with genuine engagement,” he says. “Out of our current employee base of over 5,500 people, there is
all of those early years of hard work.” Building and sustaining a positive company culture is no easy feat, though Johnsson believes its success may be owing to its hardworking but playful style, which he says is “part of our DNA”.
w w w. m a n t r a g ro u p . c o m . a u
13
MANTRA GROUP
“We pride ourselves on our strong culture – there’s a real can-do attitude that is evident within the team. We are agile in our approach and have more fun than the average hotel company,” he says. With trust and purpose at its centre, the business has been able to build more formal employee retention and growth strategies from that platform. For instance, it has cultivated a system to support the career growth of women within the company. “Mantra Group offers flexibility and the opportunity to work either parttime or with flexible working hours, where possible,” Johnsson explains. Mantra Group also offers ongoing training and leadership programs, and has an initiative designed to move people through the organisation – nationally and internationally – as ‘rising stars’. An employee that joins the company at a hotel in Sydney, for instance, could demonstrate exceptional skills and then pitch for a role at one of the group’s foreign properties. This could see Australian talent redeployed for roles as far away
14
November 2016
H O S P I TA L I T Y
as Hawaii, the site of its newest international hotel, Mantra Ala Moana. Offering six food and beverage outlets and more than 1100 hotel suites, its new Waikiki property is “a really good example of our growth strategy internationally”, Moret-Lalli says. “We look for markets that our Australian customers know well and as such our brands have immediate penetration, so we see some great opportunities to expand and quickly achieve traction. We have some aggressive plans in terms of growth to complementary offshore destinations,” he continues. “That said, Australia is still our core market and where we see most of our growth in the next 12-18 months. Australia is a mature market and opportunities are hard to come by, but because of the flexible business models we offer – from hotel management agreements, to leases, to management letting rights of serviced apartments and also franchising – it gives us the full spectrum of solutions to take to the market.”
w w w. m a n t r a g ro u p . c o m . a u
15
Say Aloha to a new Yak! Wild Yak is the latest addition to the Yak Ales herd. A combination of pale malt & wheat malt provides a light smooth palate that is low in bitterness and complemented with passionfruit and melon aromas. Wild Yak has 4.2% ABV and 15 IBU, and is available in both pack and draught. A great beer to pair with any delectable, fresh dish packed with herbs and flavours.
Wild Yak Pacific Ale’s flavour profile delivers on consumer’s desire for a greater sensorial experience with prominent fruit flavours and aromas. This brew maintains the easy drinking nature and approachability the Yaks are famous for allowing for a more ‘sessionable’ style of aromatic ale than what is currently available.
www.yak-ales.com.au
H O S P I TA L I T Y
Johnsson adds: “Hotels and hospitality are amongst the super growth industries in Australia. When you look at the broader picture, there have never been as many airports and planes being built here as there are right now, with more and more people travelling. It’s a really great space to be in and we feel very positive about our industry.”
For more on Mantra’s hotel brands visit: Mantra Group
www.mantragroup.com.au
Peppers
www.peppers.com.au
Mantra
www.mantra.com.au
BreakFree
www.breakfree.com.au
w w w. m a n t r a g ro u p . c o m . a u
17
Level 15, 50 Cavill Avenue, Surfers Paradise, QLD 4217, Australia Tel. +61 7 5631 2500 | Fax. +61 7 5631 2995 www.mantragroup.com.au