Marriott International, Inc. has completed its acquisition of the Delta Hotels and Resorts brand and management and franchise business from Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management Corporation (bcIMC).
The deal increases Marriott’s distribution in Canada to more than 120 hotels and 27,000 rooms, making Marriott the largest full-service hotel company in Canada. With the closing of the Delta transaction, Marriott’s development pipeline in Canada exceeds 45 properties and 7,300 rooms.
Marriott’s Delta portfolio includes 37 hotels and nearly 10,000 rooms in more than 30 cities across Canada.
Arne Sorenson, president and Chief Executive Officer of Marriott International, commented: “We can now officially say ‘welcome’ and ‘bienvenue’ to approximately 6,500 new colleagues at both managed and franchised hotels across Delta’s portfolio. We look forward to the growth of the Delta brand throughout Canada and beyond. As we integrate the Delta brand and hotels into the Marriott International family, together we will work toward new opportunities in the years to come.”
Don Cleary, president for Marriott Hotels of Canada, observed: “Today concluded several months of very productive collaboration. We are delighted that this will provide new travel experiences for both Delta and Marriott customers and new opportunities for our owners and franchisees. We believe both Marriott’s existing hotels and the newly added Delta hotels will benefit from new synergies that incorporate our shared values and commitment to our guests.”
In making the announcing of the completion of the acquisition, Marriott indicated that it plans to fully integrate Delta hotels onto its world-class http://www.Marriott.com booking engine and its leading Marriott Rewards platform.
Under terms of the agreement, Marriott acquired the Delta management and franchise business, as well as the Delta brand and related intellectual property. Marriott paid C$170 million (which is approximately US $134 million at current exchange rates).
bcIMC-affiliated entities own 13 Delta hotels (and one under development) and have signed new 30-year management agreements with Marriott for these properties. Third parties own the other 24 Delta hotels; 14 are managed by Delta and 10 are franchised. bcIMC was advised in the transaction by David Mongeau and Avington Financial.
Go to http://www.marriott.com for more.