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Marriott goes all-in for Elegant
Posted on Friday, 18 October 2019 11:27
Marriott International is proposing to take Elegant Hotels Group private for GBP 199.00 million in order to fuel growth of the all-inclusive platform launched in August.
The offer of 110.00 pence apiece equates to GBP 110.800 million plus debt of GBP 68.90 million, as at 31st March 2019, and represents a premium of 57.1 per cent to the last unaffected close.
Elegant owns and operates seven upscale hotels, the majority of which are operated as all-inclusive resorts, with 588 rooms and a beachfront restaurant on the island of Barbados.
Six of the seven properties are situated along the prestigious west coast commonly known as the Platinum Coast.
The company was admitted to trading on AIM in May 2015 and since then has been able to expand through the acquisitions of Waves Hotel and Spa in March 2016 and Treasure Beach Hotel in May 2017.
“However, despite its consistent financial and operational track-record, as a result of the ongoing weakness of sterling, Elegant's share price has been negatively impacted which has in-turn restricted Elegant's growth strategy.”
Directors believe the offer provides shareholders with value at a level reflecting the quality of the business and its prospects.
Marriott’s president and chief executive Arne Sorenson said in the statement: "There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category.
"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 133.00 million Marriott Bonvoy members."
Marriott is making the acquisition through wholly-owned indirect subsidiary International Hotel Licensing, which had assets of USD 4.90 billion, as of 31st December 2018 and booked net profit of USD 228.00 million in 2018.
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