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Marriott International says its definitive agreement to acquire Canada’s Delta Hotels and Resorts for $135 million would make Marriott the largest full-service hotel company in Canada.
The acquisition price is some 10 times Delta Hotels’ annualized earnings, Marriott says.
The acquisition includes the Delta Hotels and Resorts brand, as well as its management and franchise business. Marriott International’s Canada portfolio would rise to more than 120 properties with 27,000 rooms, bolstered by the addition of Delta’s 38 hotels with 10,000 rooms in more than 30 Canadian cities.
David Grissen, who oversees the Americas for Marriott International, says Canada is Marriott’s largest international source market for Marriott’s U.S. hotels, and the acquisition will offer new travel opportunities for both Delta’s and Marriott’s guests.
The acquisition deal with Delta Hotels Limited Partnership, a unit of British Columbia Investment Management Corp., will also create operational synergies for both property owners and franchisees, Grissen says.
Subject to regulatory approvals, Marriott expects the acquisition, which would not materially impact Marriott’s earnings, would close in the second quarter.