Marriott Intl plots entry into all-inclusive market with acquisition of Elegant Hotels

Marriott International has disclosed that on October 18, 2019, it entered into an agreement with the board of Elegant Hotels Group of Barbados for a full cash offer for its shares, which value approximately £100.8 million (or US$130.1 million).

Under the terms of the agreement, each shareholder would be entitled to receive 110 pence per Elegant share.

A view of the poolside at Waves Hotel & Spa
(Photo: Elegant Hotels Group)

Elegant owns and operates seven hotels, the majority of which are all-inclusive resorts, with 588 rooms and a beachfront restaurant. Six of the seven properties are situated along the prestigious west coast of Barbados, commonly known as the “Platinum Coast.”

An ‘Elegant’ future with Marriott

Despite expressing confidence in the group’s long-term prospects, Simon Sherwood, non-executive chairman of Elegant Hotels Group, said the board “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 calibre 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,” Sherwood said.

A joint press release from both companies indicated that based on Elegant Hotels Group’s total net debt of US68.9 million as at March 31, 2019, the offer price reflects a net book value of approximately US$199 million.

Treasure Beach by Elegant Hotels Group (Photo: Travel Pulse)

Post-acquisition, Marriott plans to refurbish all hotels under the Elegant brand. Once the hotels are improved upon, Marriott will merge Elegant’s hotels as all-inclusive resorts under one or more of Marriott’s collection brands.

Commenting on the acquisition, President and Chief Executive Officer of Marriott International stated: “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 jump-start our expansion in the all-inclusive space, while providing more choices on the breath-taking island of Barbados for our 133 million Marriott Bonvoy members,” he added.