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Marriott makes headway into all-inclusive market with Elegant acquisition

Marriott makes headway into all-inclusive market with Elegant acquisition

Friday, October 18, 2019

BETHESDA, MD — Marriott International is buying Elegant Hotels Group in a cash agreement valued at US$130.1 million, further cementing its plans to stake its claim in the all-inclusive market.

Elegant owns and operates six hotels on the island of Barbados, the majority of which are all-inclusive, including: Tamarind; Crystal Cove; Colony Club; Waves Hotel & Spa; Treasure Beach; Turtle Beach; and The House. It also owns and operates The Landings Resort & Spa in Saint Lucia.

The offer price values Elegant at approximately $199 million, based on its total net debt of $68.9 million.

“There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category. 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,” said Arne Sorenson, President and Chief Executive Officer, Marriott International.

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Following the acquisition of Elegant, Marriott will carry out renovations after which it will operate all Elegant properties as all-inclusive resorts under one or more of Marriott’s collection brands. Over time, the hotel giant also intends to market the Elegant hotels for sale (subject to long-term management agreements) under which Marriott would continue to manage the hotels.

Commenting on the acquisition, Simon Sherwood, Non-executive Chairman of Elegant, said: “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 caliber 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.”

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Marriott first announced its intentions to enter the all-inclusive market back in August, with news that it had signed management contracts with five new all-inclusive resorts in the Dominican Republic and Mexico. These resorts are expected to open between 2022 and 2025.

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