Marriott expands in Canada with Delta Hotels acquisition

Marriott International has added another 38 hotels to its portfolio after agreeing to buy Canadian group Delta Hotels & Resorts.

Marriott has paid C$168m (US$135m, £88.7m) to purchase the brand, management and franchise business from Delta Hotels Limited Partnership, a subsidiary of British Columbia Investment Management Corporation.

This includes 13 owned hotels which will sign a new 30-year management contract and 25 properties owned by third parties (15 managed and 10 franchised). Five managed hotels are also under development.

Through the deal Marriott is expected to become the largest full-service hotelier in Canada, with more than 120 hotels and 27,000 rooms in the country. The transaction is expected to close in the second quarter of this year.

Under its new ownership the Delta brand could also be expanded outside of Canada.

“Delta has an impressive portfolio of hotels that are among the most preferred in Canada. 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,” said Marriott’s president and CEO Arne Sorenson.

sourced:traveldailynews.asia