Melbourne has seen a plethora of new hotel openings in the past year, but due to its wide-ranging sporting and cultural events, occupancy is close to 90 per cent.

In Sydney, the Sofitel Darling Harbour, managed by AccorHotels, is the first international brand 5-star hotel to open since the Sydney Olympics in 2000. Nearby is a new W hotel under construction and The Star group is bedding down approvals for a new Ritz- Carlton next to its casino.

To cater for the demand from international and domestic-based tourists and business travellers, the AccorHotel's adjoining Novotel in Darling Harbour recently commenced a $15-million room refresh across each of the hotel’s 525 guest rooms.

This will include new lighting concepts, new King Koil beds by A.H Beard, upgraded Wi-Fi and improved working and dining areas.

Mr Issenberg said the Mantra Group deal is the latest chapter in the strong growth story of AccorHotels in the region.

''Since our launch with the Novotel Sydney on Darling Harbour in 1991, AccorHotels has become the largest hotel group in the Pacific, and Australia has always played a key role in that story,'' Mr Issenberg said.

“AccorHotels is a significant contributor to the Australian tourism industry, and this deal is a signal of our confidence in Australia both as an attractive destination for global travellers but also as a feeder market for our Asia Pacific and wider network.”

AccorHotel's chief operating officer, Simon McGrath said AccorHotels and Mantra’s combined geographic footprint, together with enhanced distribution and systems, would form a favourable base from which AccorHotels could expand further in the region.

Mr McGrath said Mantra’s expertise in apartment management, in particular, will offer a new opportunity for growth.

Properties in Mantra’s portfolio range from luxury accommodations and coastal resorts to serviced apartments in city and key leisure destinations, under three key brands: Peppers (28 properties), Mantra (75 properties) and BreakFree (24 properties). Mantra also bought the Art Series Hotel Group in 2017.

AccorHotels is one of the world’s largest hotel and tourism groups. It is listed on the French Stock Exchange. In Australia, Accor has a network of over 200 hotels under the Sofitel, Novotel, Ibis, Mercure and MGallery brands, among others, and also offers a range of short-term accommodation options with its Onefinestay business.

Mr McGrath said the Mantra deal comes at time when tourism in Australia is very strong, from both domestic and international tourists.

''We intend to keep Mantra's brands and hotel management, but we anticipate it will take three years to fully integrate the businesses,'' Mr McGrath said. ''Australia is enjoying strong demand from tourists with its stable economy, good weather and high-quality sporting, entertainment and business events.''

Mantra shares will be delisted from the ASX on Friday June 1.