by Donald Wood
Last updated: 11:58 AM ET, Fri October 18, 2019
Marriott International announced Friday it had reached an agreement to purchase the Elegant Hotels Group for approximately $199 million.
Elegant owns and operates seven hotels with 588 rooms and a beachfront restaurant on the island of Barbados, with the majority of the properties operating as all-inclusive resorts along the Platinum Coast of the island.
Marriott officials announced the company would renovate the hotels in the Elegant portfolio and begin operating them as all-inclusive resorts under one or more of Marriott's collection brands.
"There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category," Marriott International CEO Arne Sorenson said in a statement. "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."
The hotel industry 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.
Marriott launched an all-inclusive platform in August with the goal of growing a worldwide portfolio of resorts in popular vacation destinations. Completion of the transaction is subject to approval by Elegant shareholders.
"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," Elegant Chairman Simon Sherwood said. "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."
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