One of the biggest movers in morning trade today has been the Mantra Group Ltd (ASX: MTR) share price. At the time of writing the leading accommodation provider's shares are up almost 9% to $2.84.
This time last week its shares went gangbusters after reports in The Australian speculated that NYSE-listed InterContinental Hotel Group may be interested in a takeover bid.
Ultimately nothing eventuated and last week's gain were then given back in full. But the same media outlet has come out today stating that hotel giant Marriott International is now believed to be circling Mantra, with a takeover bid expected to be around $1 billion.
According to the report, Marriott is understood to be interested in expanding its presence in Australia, taking advantage of the country's tourism boom.
Should you invest?
I wouldn't invest in Mantra on the back of this news, but I would invest with a long-term view. With its shares down 38% in the last 12 months, I believe they represent great value for money. Especially with its trailing fully franked 3.5% dividend.
Whilst the company's CBD portfolio has underperformed in recent years, possibly due to the emergence of Airbnb, I do expect management to turn around the segment's performance in the near future.
Which is great news because the rest of Mantra's business has been performing extremely strongly.
In light of this I think Mantra is up there with Event Hospitality and Entertainment Ltd (ASX: EVT) and Apollo Tourism & Leisure Ltd (ASX: ATL) as one of the best options for investors looking for exposure to the tourism boom.
