Marriott International is to buy Elegant Hotels Group in a deal worth just over £100 million.
Elegant owns and operates seven hotels with 588 rooms and a beachfront restaurant on the island of Barbados. They are mostly all-inclusive.
“There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category,” said Arne Sorenson, president and CEO 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.”
Simon Sherwood, non-executive chairman of Elegant added: “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 calibre 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.”
Following the acquisition, Marriott plans to renovate the hotels and then operate all the Elegant hotels as all-inclusive resorts under one or more of its collection brands.
In keeping with its ‘asset-light strategy’, longer term Marriott intends to market the Elegant hotels for sale subject to long-term management agreements, under which it would continue to manage the hotels.
Completion of the deal is subject to conditions, including approval by Elegant shareholders.