Marriott takes over Barbados’ Elegant Hotels in $130m deal [Construction Report]

Marriott takes over Barbados’ Elegant Hotels in $130m deal [Construction Report]

Marriott takes over Barbados’ Elegant Hotels in $130m deal [Construction Report]
Courtesy: Zack Quaintance | News Source:

Seven Elegant Hotels on the island of Barbados have recently become part of Marriott’s portfolio and will soon be launched as luxurious all-inclusive resorts.

Marriott International has acquired Elegant Hotels Group which owns and operates seven hotels totalling 588 rooms, as well as a beachfront restaurant, on the island of Barbados.

Six of those seven properties are set on the island’s west coast which is commonly referred to as the Platinum Coast and most of them are operated as all-inclusive resorts.

In other words, Marriott has acquired some of the most valuable hotels in Barbados, which will help the company expand its all-inclusive resort division.
A look at the deal

Marriott reports that the agreement was reached on “the terms of a recommended all-cash offer for Elegant. Under the terms of the offer, each Elegant shareholder would be entitled to receive 110 pence per Elegant share”.

Following the acquisition, Marriott first intends to carry out renovations. Upon completion of the planned property upgrades, the hospitality giant intends to operate all newly acquired hotels as all-inclusive resorts under one or more of Marriott’s collection brands.

Marriott’s expansion strategy

In keeping with Marriott’s asset-light strategy, over time, Marriott also intends to market the Elegant hotels for sale subject to long-term management agreements under which Marriott would continue to manage the hotels.

“There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category,” said Arne Sorenson, president and chief executive officer, Marriott International.

“The addition of the Elegant portfolio will help us further jumpstart our expansion in the all-inclusive space while providing more choices on the island of Barbados for our 133 million Marriott Bonvoy members,” he added.