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.
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.