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.
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.”
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.
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.