Bethesda-based Marriott International Inc. (NASDAQ: MAR) announced Friday it has an agreement to buy Elegant Hotels Group, which owns and operates seven hotels and a beachfront restaurant on the island of Barbados.
Per a release, Marriott’s all-cash offer values Elegant at roughly $199 million, including its $68.9 million in total net debt.
Elegant’s seven hotels total 588 rooms, making it the largest luxury hotel owner on the eastern Caribbean island. Six of the seven are located on the west coast of Barbados and the majority are operated as all-inclusive resorts, a type of destination that Marriott has increasingly tried to expand into.
“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,” Arne Sorenson, Marriott president and CEO, said in a release.
An Elegant executive said the company was confident in its 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.”
Marriott plans renovations to the Barbados portfolio once the deal closes, and will operate them all as all-inclusive “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,” the release states.
Elegant’s hotels are Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach. Its beachfront restaurant is called Daphne’s.
In other Marriott news, the company announced Thursday it paid $206 million for the 270-room W New York – Union Square. It plans a “significant renovation” for the 20-story property, to “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.” The W Hotel brand is under the massive Marriott umbrella.
“There’s no better place than New York City to reveal to the world the future of our W Hotels brand, so we’re tremendously excited about this acquisition and the unique opportunity that it presents for our reinvention strategy,” Sorenson said in a release.
The Union Square property, located at 201 Park Ave. South, first opened in 1911 as the headquarters of the Guardian Life Insurance Co. of America. It opened as a W in 2000.