Marriott International Inc. to acquire Elegant Hotels Group Plc for US$200m
Marriott International will pay 110 pence a share in cash for Elegant Hotels, a 57% premium to its share price at close of business on Thursday. That values Elegant at about 101 million pounds sterling (US$130 million), or a total of about US$199 million including debt, the company said in the statement. The deal is subject to shareholder approval.
The purchase will make Marriott one of the largest hotel companies in Barbados. Elegant Hotels, which went public in 2015, owns and operates seven hotels with 588 rooms and a beachfront restaurant in the Barbados. They are Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach.
The properties are all freehold, with a total aggregate plot size of approximately 23 acres and an aggregate beachfront of approximately 2,600 feet.
In the year ended 30 September 2018, the Group reported revenue of $62.9 million and EBITDA before non-recurring items of $19.7 million.
In Britain, Chairman Simon Sherwood told the Independent news site that: “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.
He added that the purchase by Marriott was a “resounding endorsement” of the quality of the Elegant properties, operations and people, and of Barbados as a highly desirable destination.
Meanwhile, Marriott’s chief executive officer, Arne Sorenson, said in the statement that there was a strong and growing consumer demand for premium and luxury properties in the all-inclusive category into which Marriott has started expanding.
Following the acquisition, Marriott intends to carry out renovations to the hotels in the Elegant portfolio, the company said n a press statement, following which it will operate all the Elegant hotels as all-inclusive resorts under one or more of Marriott's collection brands. However, in keeping with it “asset-light strategy”, 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.
In August, Marriott launched an all-inclusive platform with the goal of growing a worldwide portfolio of resorts in popular vacation segments by leveraging the company's operational and development expertise, its Marriott Bonvoy travel program with roughly 133 million members, and its iconic hotel brands.