Marriott International has signed an agreement with the Elegant Hotels Group’s board to acquire the company in a recommended all-cash offer of £100.8m ($130.1m).
Under the terms of the deal, each Elegant shareholder will receive 110 pence per Elegant share.
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The proposed price represents an enterprise value of nearly $199m, which includes Elegant’s total net debt of $68.9m.
Elegant currently owns and operates seven hotels with 588 rooms and a beachfront restaurant on the island of Barbados.
The seven hotels include Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa, and Treasure Beach.
Marriott International president and chief executive officer Arne Sorenson said: “There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category.
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By GlobalData“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.”
The acquisition is currently dependent on the satisfaction or waiver of the offer conditions including approval by Elegant shareholders.
In addition, Marriott is planning to renovate all the hotels in the Elegant portfolio after closing the deal.
It also plans to operate the renovated hotels under one or more of its collection brands as all-inclusive resorts.
As part of its asset-light strategy, Marriott expects to market the Elegant hotels for sale over a certain period of time. This will be based on long-term management agreements, under which the hotels will continue to be managed by Marriott.
