London-listed Elegant Hotels, which owns and runs seven luxury hotels and a restaurant in Barbados, is being bought by international rival Marriott Hotels for a hundred million pounds, that’s about 129 million US dollars.
The Elegant properties in Barbados comprise Tamarind, Crystal Cove, Colony Club, Turtle Beach, Waves Hotel and Spa, Treasure Beach, the House and Daphne’s Restaurant.
It also owns The Landings in St. Lucia.
Chief Executive Officer of the Elegant Hotels Group, Sunil Chatrani, confirmed the proposed sale to Starcom Network News.
Marriott is reported to have made a very attractive offer for the Elegant Group proposing to purchase each share for a price that works out at almost 60 percent more per share than yesterday’s closing price for the Elegant shares on the stock market.
Analysts note that the purchase would allow Marriott to expand its recently launched all-inclusive offerings.
One article on the deal carried in the international business media states – quote – 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.
Meantime, Chairman of Elegant Hotels 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.
He added, 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 Sorenson, president and chief executive of Marriott, said: – quote “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.” – unquote.
Marriott has 7 thousand 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 percent to 43.7 million US dollars.