In a busy week for Marriott, the company has reached an agreement with the board of Elegant Hotels Group on the terms of a recommended all cash offer.
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 $130 million, or £100 million.
The price implies an enterprise value for Elegant of approximately $199 million based on Elegant’s total net debt of $68.9 million as at March this year.
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, chief executive, 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 breath-taking island of Barbados for our 133 million Marriott Bonvoy…