The French owner of Ibis, Mercure and several other hotel chains has moved one step closer to buying out Australian competitor Mantra for AUS $1.3bn (£770m).
Mantra's board has unanimously agreed to accept the bid from AccorHotels, which was announced earlier this week.
Mantra is one of Australia’s largest hotel and resort companies with 127 properties and over 20,000 rooms in hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii. It is headquartered in Surfers Paradise on Australia's Gold Coast.
"This operation will underpin our long-term growth in the Asia Pacific region," said AccorHotels's chairman and chief executive Sébastien Bazin.
"Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia. We are confident that the transaction terms are attractive for shareholders of both groups."
Australian authorities will now need to give regulatory approval for the takeover to go ahead, and Mantra's shareholders will vote on the deal. It is anticipated the process will be completed early next year if approval is given.
"Mantra’s strong expertise in apartments, in particular, and our presence in resort locations are very complementary to the AccorHotels operations in Australia and New Zealand," said Mantra chairman Peter Bush.
"The combined business will be an important part of Australia’s strong and growing tourism market and its customers will benefit from the market leading expertise of both groups”
It comes in a week of mega hotel takeover offers, after City Developments settled on an offer worth nearly nearly £2bn for Millennium & Copthorne.