Marriott's deal to buy Elegant Hotels Group in Barbados, almost done

Marco Green
October 20, 2019

The former Pizza Express and Patisserie Valerie boss is cashing in after Marriott International, the hotel group that owns the Sheraton, Westin and Renaissance brands, announced a deal to buy Elegant Hotels, which is listed on the UK's junior Aim market, for £100.8m. "We are therefore unanimously recommending the offer to our shareholders", said Sherwood.

The Barbados hotelier said the ongoing weak performance of sterling has hit its share price, reducing its freedom to pursue its growth strategy, while directors felt that changes in the macroeconomic landscape could potentially reduce demand from its core customer base. Under the terms of the offer, each Elegant shareholder would be entitled to receive 110 pence per Elegant share. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company will transform the existing hotel into a "cutting-edge W Hotels showcase", advancing the company's strategy to redefine and reinvigorate the brand in North America.

According to Elegant, six of its seven hotels are on Barbados's so-called Platinum Coast, where footballers, celebrities and billionaire businessmen regularly stay over Christmas and New Year.

After completing the deal, Marriott is planning to renovate the hotels and rebrand them as all-inclusives under one of its brands.

"When W was launched as a single hotel in NY 21 years ago with ground-breaking design and a bold approach to nightlife, it pushed the boundaries of how people thought about a hotel", says Arne Sorenson, president and CEO of Marriott International.

The offer price implies an enterprise value for Elegant of approximately $199.0 million based on Elegant's total net debt of $68.9 million as at 31 March 2019 as set out in Elegant's most recent half year report for the six months ended 31 March 2019. A spokesperson for Marriott told Commercial Property Executive its still too early for a timeline of the renovation plans. The company also noted in its announcement that it plans to eventually sell the property, subject to a long-term management agreement. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. "The overhaul of W New York - Union Square is part of a larger transformation program we put in place in North America, which also includes new openings in locations from Aspen to Toronto, as well as extensive renovations at many of our hotels in the region such as the recent, top-to-toe makeover of W Washington D.C". In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER