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by Michael J. Shapiro | January 28, 2015
Marriott International signed an agreement Tuesday to acquire the Delta Hotels and Resorts brand, management and franchise business for approximately US$135 million. Delta has 38 hotels and more than 10,000 rooms in more than 30 Canadian cities. The deal will reportedly make Marriott the largest hotelier in Canada, increasing its presence to 120 hotels and 27,000 rooms. "With this acquisition," said Marriott president and CEO Arne Sorenson in a statement, "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." Pending approval by third parties and government agencies, the parties expect the deal to close in the second quarter of this year. Marriott does not expect the transaction to have a material impact on 2015 financial results.