P +61 (0)7 5631 2500 F +61 (0)7 5631 2995 Level 15, 50 Cavill Avenue Surfers Paradise QLD 4217 PO Box 8016 Gold Coast MC QLD 9726 www.mantragroup.com.au Mantra Group Limited ACN 137 639 395 ABN 69 137 639 395

7 August 2017

ASX Release

MANTRA GROUP LIMITED (ASX: MTR) ART SERIES HOTEL GROUP ACQUISITION

Mantra Group Limited (“Mantra Group”) is pleased to announce that it has entered into an agreement to acquire The Art Series Hotel Group comprising a portfolio of seven luxury 4 – 5 Star unique hotels in popular cultural hubs in key Australian capital cities ("Art Series Acquisition"), subject to customary completion conditions. The Art Series Acquisition consists of:

7 properties under a combination of Leasehold and Management Letting Rights (MLR) operating models

Over 1,000 hotel suites and apartments and a number of conference and event facilities, restaurants and luxury hotel style amenities

A well recognised and unique luxury hotel brand Freehold title to key commercial lots, reception areas and offices

The purchase price of approximately $52.5 million (excluding transaction costs) will be funded via available cash and existing debt facilities. The Art Series Acquisition is consistent with Mantra Group’s ongoing strategy to selectively secure sizeable acquisitions and this acquisition presents Mantra Group the opportunity to expand its portfolio with a luxury and unique portfolio of hotels in cultural hubs in key Australian capital cities. Each property is inspired by well-known celebrated Australian artists offering guests a hotel experience ‘a little out of the ordinary’ infusing the artist’s works and personality throughout the hotel to create a truly art inspired experience. Recognising the strength of the Art Series brand in market, each property will continue to operate under The Art Series brand. The hotels cater to a diverse range of guests and are well suited to both leisure and corporate travellers.

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The Art Series Acquisition is expected to contribute approximately $7 million in Underlying EBITDA in its first full year of ownership providing a material Underlying EBITDA uplift to the CBD segment. This includes The Chen, Box Hill which is expected to open in November 2017 and will be loss making in its first year of ownership. At stabilisation, the portfolio is forecast to contribute between $8.5 million and $9 million in Underlying EBITDA. The impact of the Art Series Acquisition is expected to be immediately accretive to Underlying EPS. Settlement of the Art Series Acquisition is expected to occur in late 2017 subject to closing conditions customary for an acquisition of this nature. Mantra Group’s CEO, Mr Bob East said: “The Art Series Acquisition is an exciting opportunity for the Mantra Group providing a portfolio acquisition that is well aligned to Mantra Group’s core business and expertise while at the same time offering a unique experience for our guests.” “This acquisition enhances our existing portfolio and we have arrangements in place that should deliver new Art Series properties into the future” Mr East said. FY17 Results Mantra Group confirms that it will announce its results for FY17 on Tuesday 29 August 2017.  About Mantra Group Mantra Group is the leading Australian-based hotel and resort operator. Mantra Group’s portfolio consists of 128 properties with more than 21,500 rooms in properties under management, across Australia, New Zealand, Indonesia and Hawaii. Operating three well-known and trusted brands – Peppers, Mantra and BreakFree - Mantra Group operates the second largest network of accommodation properties in Australia (by room number). The Group is positioned to offer both leisure and business style accommodation ranging from full-service city hotels and self-contained apartments to luxury resorts and retreats. The Group successfully listed on the ASX in June 2014 and in its first year as a public company was elevated to the ASX 200: www.mantragroup.com.au; www.peppers.com.au; www.mantra.com.au ; www.breakfree.com.au

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Art Series Acquisition

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Property: The Watson

Location: Adelaide, SA

Model: LEASE & MLR

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Olsen

Location: South Yarra, VIC

Model: LEASE

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Blackman

Location: Melbourne, VIC

Model: LEASE

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Cullen

Location: Prahran, VIC

Model: LEASE

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Larwill

Location: Melbourne, VIC

Model: LEASE

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Chen

Location: Box Hill, VIC

Model: LEASE & MLR

Opening: Under management from H1FY2018

Segment: CBD

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Property: The Johnson

Location: Spring Hill, QLD

Model: LEASE & MLR

Opening: Under management from H1FY2018

Segment: CBD

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