Marriott International has entered an agreement with British Columbia Investment Management (bcIMC) subsidiary Delta Hotels Limited Partnership to acquire its Delta Hotels and Resorts brand, for around C$168m ($135m).
As part of the deal, Marriott will acquire the Delta management and franchise business, as well as the Delta brand and related intellectual property.
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The Delta brand includes hotels and resorts with 38 hotels and 10,000 rooms in around 30 cities across Canada.
The deal will expand Marriott’s distribution in Canada to around 120 hotels and 27,000 rooms, transforming the company into the largest full service hotel firm in the country.
Delta’s hotels are known for a fresh approach to the guest experience, including new ModeRoom guest room designs, innovative use of new technologies, and new properties.
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Marriott International president and CEO Arne Sorenson said: "With this acquisition, we are continuing our focus on building our brand portfolio and growing in attractive regions outside the US.
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By GlobalData"Combining the strong Delta brand with Marriott’s hotel development expertise will accelerate growth of the brand in Canada and in other markets around the world."
According to Marriot, bcIMC-affiliated entities own 13 Delta hotels and one under development property, and will sign new 30-year management agreements with Marriott for these properties.
Third-parties will own the other 25 Delta hotels, while 15 properties will be managed by Delta and ten will be franchised.
Marriott International group president overseeing The Americas David Grissen said: "Canada represents the largest international source market for our hotels in the US, and the integration of Delta into Marriott’s 4,100 plus hotel global portfolio will provide new travel opportunities for both Delta and Marriott customers."
Subject to receipt of certain third-party and governmental consents, including the Canadian Competition Bureau, the transaction is expected to be completed in the second quarter of 2015.
Image: Delta Toronto at the hub of Canada’s high-rise neighbourhood, South Core. Photo: courtesy of Marriott International, Inc.
