Scenic Hotel Group acquires lodging company Kiwi Mitchell Corp

Christchurch-based hotel management company Scenic Hotel Group has acquired fellow Kiwi accommodation company Mitchell Corp as it seeks to diversify its business model post-pandemic.

With 40 years of industry experience under its belt, Scenic Hotel Group aims to achieve economies of scale for Mitchell Corp, which includes Golden Chain, Mainstay Hotels, Ezibed and other iconic programs including Go Kiwi.

“Like us, Mitchell Corp is essentially Kiwi with strong community and business ties,” said Scenic Hotel Group CEO Karl Luxon.

“This is most evident in the independent, family-owned hotels and motels that have long been the backbone of New Zealand tourism.”

This acquisition is part of Scenic Hotel Group’s strategy of growth and diversification, and aims to bring together Kiwi operators for the best of their businesses and New Zealand tourism.

“We will continue to work closely with Mitchell Corp over the coming weeks to ensure a seamless integration and we are excited about future opportunities as New Zealand reopens to the world,” Luxon said.

Luxon had started talks with Mitchell Corp’s Matt Standing last year before he passed away after a long illness in November. Negotiations then continued with the liquidator EY.

“It took time to do due diligence on Mitchell Corp’s portfolio,” Luxon said.

“We also needed time to engage with owners and operators.”

While the past two years have tested the company and the industry as a whole, Luxon says this period of upheaval has created an opportunity.

“Like so many others, Scenic Hotel Group has taken a very hard hit during the pandemic, but we have also used this time to reset our business strategy for the very changed world we are heading into,” he said. .

“This has meant embracing new technologies, reflecting changing customer preferences following huge social change and we welcome the opportunities to share this with all of our business partners, including Mitchell Corp Brands.”

Peter M. Doran