Marriott Hotels snaps up Barbados rival in £101m deal

London-listed Elegant Hotels, which owns and runs seven luxury hotels in Barbados, has been bought by international rival Marriott Hotels for £101 million, the company has confirmed.

The 110p-a-share bid is a 57% premium to the closing price on Thursday and will allow Marriott to expand its recently launched all-inclusive offerings.

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.

Elegant listing on the LSE
Elegant Hotels listed on the London Stock Exchange in 2015 (LSEG/PA)

Chairman Simon Sherwood 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 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 our shareholders.”

Investors in Elegant will vote on whether to accept the deal in the coming weeks.

Arne M Sorenson, president and chief executive of Marriott, said: “There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category.

“The addition of the Elegant Hotels portfolio will help us further jump-start our expansion in the all-inclusive space, while providing more choices on the breathtaking island of Barbados.”

Marriott has 7,000 properties in 132 countries with brands including Ritz-Carlton, W and Courtyard.

Elegant’s most recent results for the six months to March 31 saw revenues up 3% to 43.7 million US dollars (£33.9 million), with the industry’s all-important revenue per available room at 364 dollars (£283) a night.

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