BETHESDA, Md. ― Marriott International, Inc. announced it has signed definitive agreements to acquire 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) for $168 million.
“Delta has an impressive portfolio of hotels that are among the most preferred in Canada,” said Arne Sorenson, president and CEO of Bethesda, Md.-based Marriott International. “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.”
The Toronto-based Delta brand comprises 38 hotels and 10,000 rooms in more than 30 cities across Canada. When completed, the transaction will increase Marriott’s distribution in Canada to more than 120 hotels and 27,000 rooms, making Marriott the largest full-service hotel company in Canada.
BcIMC-affiliated entities own 13 Delta hotels (with one under development) and will sign new 30-year management agreements with Marriott for these properties. Third parties own the other 25 Delta hotels; fifteen are managed by Delta and 10 are franchised. In total, five managed hotels (approximately 1,100 rooms) are under development.
“Canada represents the largest international source market for our hotels in the United States, and the integration of Delta into Marriott’s 4,100-plus hotel global portfolio will provide new travel opportunities for both Delta and Marriott customers,” said David Grissen, group president overseeing The Americas for Marriott International. “We expect integrating Delta into Marriott’s systems, sales engines, Marriott.com, and the more than 49-million member Marriott Rewards loyalty program will create meaningful operational synergies for owners and franchisees. Marriott’s Americas’ management team looks forward to working closely with Delta’s hotel owners and franchisees, and welcoming Delta employees, who will have access to a larger range of opportunities in North America and globally once the transaction closes.