British Columbia Investment Management Corp. (bcIMC) has agreed to sell Delta Hotels and Resorts to Marriott International for $168 million.
Under terms of the agreement, Marriott is acquiring the Delta management and franchise business, as well as the Delta brand and related intellectual property from Delta Hotels Ltd. Partnership, a bcIMC subsidiary.
bcIMC-affiliated entities own 13 Delta hotels (and one under development) and will sign new 30-year management agreements with Marriott for these properties. Third parties own the other 25 Delta hotels; 15 are managed by Delta, and 10 are franchised. In total, five managed hotels (approximately 1,100 rooms) are under development.
“Delta has an impressive portfolio of hotels that are among the most preferred in Canada,” says Arne Sorenson, president and CEO of Marriott International. “With this acquisition, we are continuing our focus on building our brand portfolio and growing in attractive regions outside the U.S.”
The transaction is subject to receipt of certain third-party and governmental consents, including by the Canadian Competition Bureau. Assuming receipt of the necessary approvals, the transaction is expected to close in the second quarter of 2015.