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 transaction increases Marriott’s distribution in Canada to more than 120 hotels and 27,000 rooms, making it the largest full-service hotel company in Canada. In addition, its development pipeline in Canada exceeds 45 properties and 7,300 rooms.
‘We can now officially say ‘welcome’ and ‘bienvenue’ to approximately 6,500 new colleagues at both managed and franchised hotes across Delta’s portfolio,” said Anne Sorenson, Marriott International’s president and CEO. “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, said, “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.”
Marriott plans to fully integrate Delta hotels onto its Marriott.com booking engine and its Marriott Rewards platform.
Under the 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.
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.