BETHESDA, Md., Oct. 18, 2019 /PRNewswire/ -- Marriott
International (NASDAQ: MAR) announced today the company has reached
an agreement with the board of Elegant Hotels Group plc (LON: EHG;
"Elegant") 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. The offer values the entire issued
and to be issued ordinary share capital of Elegant at approximately
£100.8 million ($130.1 million based
on £1:$1.29).
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.
Elegant owns and operates seven hotels with 588 rooms and a
beachfront restaurant on the island of Barbados. Six of the seven properties are
situated along the prestigious west coast of Barbados commonly known as the "Platinum
Coast." The majority of Elegant properties are operated as
all-inclusive resorts.
"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 breathtaking island of Barbados for our 133 million Marriott Bonvoy
members."
Commenting on the acquisition, Simon
Sherwood, Non-Executive Chairman of Elegant said, "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. 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."
Following the acquisition, Marriott intends to carry out
renovations to the hotels in the Elegant portfolio. Upon completion
of the planned property renovations, Marriott intends to operate
all the Elegant hotels as all-inclusive resorts under one or more
of Marriott's collection brands. 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.
In August, Marriott launched an all-inclusive platform with the
goal of growing a worldwide portfolio of resorts in popular
vacation segments by leveraging the company's operational and
development expertise, its Marriott Bonvoy travel program with
roughly 133 million members, and its iconic hotel brands.
Completion of the transaction is subject to satisfaction or
waiver of the offer conditions set out in the offer
announcement, including approval by Elegant
shareholders.
This announcement should be read in conjunction with the full
text of the announcement of the offer for Elegant which will be
available shortly on the Marriott website at
www.marriott.com/investor.
Note on Forward-Looking Statements
This news release
contains "forward-looking statements" within the
meaning of federal securities laws, including the company's plans
for closing the transaction, the company's plans for property
renovations, the company's plans to market the hotels for sale in
the future, the number of lodging properties the company may add in
the future, the potential for growth of the company's all-inclusive
platform and similar statements concerning possible future events
or expectations that are not historical facts. We caution you that
these statements are not guarantees of future performance and are
subject to a number of risks and uncertainties, including the
receipt of necessary consents and approvals; changes in market
conditions; changes in global and regional economies; supply and
demand changes for hotel rooms; competitive conditions in the
lodging industry; relationships with clients and property owners;
the availability of capital to finance property growth and
refurbishment; and other risk factors that the company identifies
in its most recent annual report on Form 10-K or quarterly report
on Form 10-Q; any of which could cause actual results to differ
materially from the expectations we express or imply here. We make
these statements as of the date of this press release, and we
assume no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
About Marriott International
Marriott International, Inc. (NASDAQ: MAR) is based in
Bethesda, Maryland, USA, and
encompasses a portfolio of more than 7,000 properties under 30
leading brands spanning 132 countries and territories. Marriott
operates and franchises hotels and licenses vacation ownership
resorts all around the world. The company now offers one travel
program, Marriott Bonvoy™, replacing Marriott Rewards®, The
Ritz-Carlton Rewards®, and Starwood Preferred Guest®(SPG). For more
information, please visit our website at www.marriott.com, and
for the latest company news, visit www.marriottnewscenter.com.
In addition, connect with us on Facebook and
@MarriottIntl on Twitter and Instagram.
About Elegant
Elegant owns and operates seven luxury
freehold hotels and a beachfront restaurant, Daphne's, on the
island of Barbados. Elegant's
portfolio currently comprises 588 rooms, making it twice as large
(by room number) as the closest competitor in the Barbados luxury hotel room market. Six of the
seven properties are situated along the prestigious west coast of
Barbados commonly known as the
"Platinum Coast". The properties are all freehold, with a total
aggregate plot size of approximately 23 acres and an aggregate
beachfront of approximately 2,600 feet.
In the year ended 30 September
2018, the Group reported revenue of $62.9 million and EBITDA before non-recurring
items of $19.7 million.
Together, the Group's seven existing hotels - Colony Club,
Tamarind, The House, Crystal Cove,
Turtle Beach, Waves Hotel & Spa and Treasure Beach - offer styles encompassing
classic and contemporary, family-friendly and adults-only.
IRPR#1
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SOURCE Marriott International, Inc.