Marriott adds 38 hotels in Canada with acquisition
Hotel group to purchase Delta Hotels & Resort, and its 10,000 rooms, for $135 million
Marriott International is to significantly expand its footprint in Canada with the acquisition of Delta Hotels and Resorts, and its 38 properties across the country.
The company said it has signed definitive agreements to acquire the brand and its management and franchise business from Delta Hotels Limited Partnership for C$168 million (US $135 million).
Expected to be completed in the second quarter of 2015, the deal will result in Marriott having more than 120 hotels, with 27,000 rooms, across Canada. The company claims this will make it the largest full service hotel company in the country.
“Delta has an impressive portfolio of hotels that are among the most preferred in Canada,” said Marriott International president and chief executive officer Arne Sorenson.
“With this acquisition, we are continuing our focus on building our brand portfolio and growing in attractive regions outside the U.S. Combining the strong Delta brand with Marriott's hotel development expertise will accelerate growth of the brand in Canada and in other markets around the world.”
Of the hotels within the scope of the deal, 13 are owned by bcIMC-affiliated entities, with another one under development. They will sign new 30-year management agreements with Marriott for these properties.
Third parties own the other 25 hotels, of which 15 are managed by Delta and 10 are franchised. A total of five managed hotels, with approximately 1100 rooms, are under development.
The deal comes on the back of a major acquisition by Marriott last year, of the 116-hotel Protea Hospitality Group (PHG), based in South Africa.