Marriott International has agreed
to acquire upper-upscale chain Delta Hotels and Resorts for approximately $135 million. The deal
would include the Canadian company's management and franchise businesses.
Delta has 38 hotels across Canada.
Its flagship Delta Toronto opened in December.
“We didn’t have the same platform
that Delta ultimately provides us in [Canada] in terms of brand
recognition,” Noah Silverman, chief development officer of full-service
hotels in Marriott International’s North America region, said on
Tuesday on a panel at the Americas Lodging Investment Summit in Los
He added that while Delta management in recent years tried to push
the brand upmarket into the upper-upscale sector occupied by the Marriott,
Hyatt and Hilton brands, Marriott International would keep Delta in the
upscale full-service sector where he said the brand is more “comfortable.”
When the transaction is completed, Marriott International will increase its
number of hotels in Canada to 120.
“Delta has an impressive portfolio
of hotels that are among the most preferred in Canada,” said Marriott CEO Arne
Sorenson. “With this acquisition, we are continuing our focus on building
our brand portfolio and growing in attractive regions outside the U.S.”
Marriott said it expects to close
the deal in the second quarter, pending approval the Canadian Competition
Bureau and others.