PwC advises Marriott on acquisition of UK-listed Elegant Hotels
US multinational hospitality brand Marriott International has closed the acquisition of Elegant Hotels Group for $130 million. A corporate finance team from PwC advised Marriott on the transaction, which sees Elegant become a wholly-owned subsidiary of the leisure industry giant.
Elegant Hotels Group operates nine award winning resorts throughout the Caribbean. Elegant, which was listed on the London Stock Exchange, owns and operates seven luxury freehold hotels and a beachfront restaurant, Daphne's, on the island of Barbados. Elegant's portfolio currently comprises 588 rooms, making it twice as large by room number as the closest competitor in the Barbados luxury hotel room market.
In October 2019, the firm signed an agreement with Marriott-subsidiary International Hotel Licensing Company (IHLC) – as per which IHLC made an all-cash offer for the entire issued and to be issued ordinary share capital of Elegant. Now, following court approval of the deal, Elegant has become a wholly-owned subsidiary of IHLC.
Speaking after the agreement was initially reached, Marriott International CEO Arne Sorenson said, “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 jump-start our expansion in the all-inclusive space while providing more choices on the breathtaking island of Barbados for our 133 million Marriott Bonvoy members.”
While Liberum Capital served as financial adviser and broker to Elegant, PwC Corporate Finance acted as the financial advisor to Marriott on this transaction. The team consisted of Simon Hampton, Rakesh Kotecha, Jon Raggett, Samantha Ward, Joshua Lustbader, Laurence Dolan, Ishan Kalra, Chris Haught, Robbie Kirk and Stephanie Fitzsimons.
Simon Hampton, PwC Partner and Head of Real Estate Corporate Finance, said of the news, “We are delighted to have advised Marriott on this strategic cross-border acquisition. We believe this deal is a great outcome for all parties involved, including shareholders and employees, and gives Marriott their first significant hotel portfolio on one of the most popular Caribbean islands whilst fitting perfectly into their stated all-inclusive programme goals.”
