Marriott International is set to acquire Barbados’ Elegant Hotels Group in a $130 million all-cash deal, bringing the hotel chain’s all-inclusive division one step closer to realization.
Elegant owns and operates seven hotels with 588 rooms and a beachfront restaurant on the island of Barbados, six of which are located on the island’s Platinum Coast. The majority of Elegant properties are operated as all-inclusive resorts.
Following the acquisition, Marriott intends to carry out renovations to the hotels in the Elegant portfolio and, upon completion of the planned property renovations, will operate all the Elegant hotels as all-inclusive resorts under one or more of Marriott’s collection brands. In keeping with its asset-light strategy, over time, Marriott also intends to market the Elegant hotels for sale subject to long-term management agreements under which Marriott would continue to manage the hotels.
“There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category,” said Arne Sorenson, president and CEO of Marriott International. “The addition of the Elegant portfolio will help us further jumpstart our expansion in the all-inclusive space, while providing more choices on the breathtaking island of Barbados for our 133 million Marriott Bonvoy members.”
Commenting on the acquisition, Simon Sherwood, Non-Executive Chairman of Elegant said, “The Board of Elegant Hotels is confident in the Group’s long-term prospects but believes that this offer represents compelling value for our shareholders and a great opportunity for our employees to be part of one of the world’s leading hotel companies. The fact that Elegant Hotels has attracted the interest of a company of Marriott’s caliber is a resounding endorsement of the outstanding quality of our properties, operations and people, and indeed of Barbados as a highly desirable destination. We are therefore unanimously recommending the offer to shareholders.”
Completion of the transaction is subject to satisfaction or waiver of the offer conditions set out in the offer announcement, including approval by Elegant shareholders.
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