Shannon Willoughby
05Apr08
TOURISM group Stella has found its groove with its new owner CVC Asia Pacific, says chief executive Bob East.
Earlier this year, CVC Asia Pacific bought a 65 per cent stake in the Gold Coast hotel and hospitality group from embattled funds manager Octaviar (formerly MFS) for $409 million.
"They (CVC Asia Pacific) are great, they're fantastic. They are extremely strong," said Mr East.
"We have come out of an interesting environment and (Octaviar) is a minor shareholder which has little impact on the company."
Speaking at a Women in Tourism breakfast yesterday, Mr East said Stella this year would spend $16 million on rebranding and marketing, beginning with Mantra.
Mantra is the new name for Saville and Pacific International properties and on the Gold Coast include Circle on Cavill, Q1, The Phoenician and Salt Beach at Kingscliff.
The group will have Mantra hotels in every major Australian city.
"Alice Springs is the only part of the map we don't have a stake to claim," said Mr East.
Other brands the tourism and hospitality group own include BreakFree, Peppers and Protea Hotels in South Africa, as well as a handful of tourism wholesalers including Harvey World Travel and Travelscene.
"We are going to be doing very little to expand the BreakFree brand," he said.
"But we are looking at expanding Peppers (the high-end resort brand) overseas."
Mr East said while the group expanded nationally and internationally, the Gold Coast remained important.
"The Gold Coast has tremendous opportunities because of the new low-cost airlines," he said.
"The Gold Coast Convention and Exhibition Centre is really important to the growth of the area. We have a strong emphasis on the Gold Coast.
"It is Australia's best tourist destination, undoubtedly."
Mr East said the group was looking at all avenues to tackle the skills shortage and lure people to work in the hospitality industry.
"We are trying to do everything we can. We are looking at an online university course," he said.
"We have to be professional to get young people away from the mines and into hospitality.
"At the moment, we have to bus cleaners daily from Cairns to Port Douglas to service the hotels."
Stella is Australia's second-largest hotel operator.
More than 50 of its properties are being rebranded to Mantra.
Earlier this year, CVC Asia Pacific was granted Foreign Investment Review Board approval for the purchase.
A remaining $3.2 million, relating to cost reimbursements, will be received in 12 months.
Initially, Octaviar was is seeking at least $1.2 billion for a 50 per cent stake in the company.
OCV
octaviar limited
