Marriott International is expanding its investment into all-inclusive resorts in the Caribbean and Mexico with a new agreement with the board of Elegant Hotels Group plc to acquire the company. Marriott says the offer values the entire issued and to be issued ordinary share capital of Elegant at approximately £100.8 million (approximately $130.1 million).
Elegant owns and operates six hotels with 588 rooms and a beachfront restaurant on the island of Barbados. Six of the seven properties are situated along the west coast of the island, known as the “Platinum Coast.” The majority of the Elegant properties are operated as all-inclusive resorts. All in all, the portfolio includes Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel and Spa and Daphne’s beachfront restaurant.
Following the acquisition, Marriott says it intends to carry out renovations to the hotels in the Elegant portfolio. Upon completion of the planned property renovations, Marriott plans to operate all of the Elegant hotels as all-inclusive resorts under one or more of Marriott’s brands.
“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, in an official release. “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.”
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.