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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.
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.”
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.