Mantra raises $107m to fund US hotel buy

Hotel and resort operator Mantra Group has raised $107 million through a share placement, issuing shares at $3.95 each.

Australia's second largest hotel and resort operator Mantra Group has raised $107 million through a share placement to fund the acquisition of a property in Hawaii.

The company issued shares to institutional investors at $3.95 each, representing a 1.5 per cent discount to its closing price on Tuesday.

The proceeds will be used to fund Mantra's acquisition of the Ala Moana Hotel in Honolulu and associated real estate for a purchase price of $US52.5 million ($A72.60 million).