Mantra Group CEO Bob East at annual conference on Wednesday.

Gold Coast-based Mantra, Australia’s largest holiday accommodation company with more than 120 properties across Australia, New Zealand and more recently Asia, has up until now operated through management rights, leasehold or marketing services agreements.

But CEO Bob East told the company’s annual conference on Wednesday that Mantra, which claims to have $7 billion in assets under management including the upmarket Peppers chain, was ‘going to start buying hotels’.

“This is an important future step for our business,’’ he said.

“We won’t go into development but if we see the right asset .. in key leisure or key CBD locations ... this is an opportunity for us.’’

Mr East said Mantra was ‘not going to rush out and buy 15 hotels’.

“If the right product comes up, it is something we’d consider,’’ he said. “We’ll also consider part-equity participation.’’

Mr East said despite planned expansion in Asia, buying hotels there was ‘probably a step too far’ and Mantra would likely focus its ownership strategy on Australia and possibly NZ.

He said Queensland hotels were on the radar but Mantra was ‘really hot’ on Sydney and Melbourne.

Mantra had opened six properties in Brisbane in the last 12 months however Mr East said any new acquisitions were ‘very much predicated on location’.

“We’re not interested in fringe properties,’’ he said.

He said with Mantra already spending about $80 million a year on acquisitions, the move to own hotels was ‘not a game-changer but a game-enhancer’.

Mantra shares closed up 15¢ or 4.17 per cent at $3.75 on Wednesday.