Mantra Hotel has moved closer to the opening of the hotel at Sydney Airport at a time when hotel room supply is said to be lower than demand.

Mantra, which has seen its share price fluctuate amid takeover rumours in recent times, said the nine-level hotel at 3 Ross Smith Avenue has moved to the fitout phase and is on track to open in late June.

Hotel groups Marriott International and the InterContinental Group have indicated they would be "unlikely buyers" of the listed Mantra group, which is worth close to $1 billion in market value.

Mantra Group area manager for Sydney Neil McDonald said  once open, the hotel will address Sydney's real need for greater, and more "contemporary, on-airport hotel accommodation".

Mantra Group chief executive Bob East said the hotel aims to meet the demand for business travellers looking for conveniently located accommodation close to the airport and its terminals.

"The new hotel also has several sustainability measures under consideration including solar panels, rain water storage tanks, electric car charging station and bicycle facilities for staff and guests," Mr East said.

It will feature 136 guest rooms, a restaurant and bar, car parking, and an integrated lobby and reception space.