Marriott signs deal to buy Delta Hotels and Resorts

Marriott International took a large step into Canada today with the planned purchase of the Delta Hotels and Resorts brand.

The Wall Street Journal reported that Marriott signed a contract to buy Delta from a subsidiary of British Columbia Investment Management for approximately $130 million. Delta has 38 hotels in 30 cities throughout Canada, and Marriott acquired Delta's management and franchise business, as well as its brand and related intellectual property.

Affiliates of British Columbia Investment Management own 13 of Delta's hotels, and will sign a new 30-year management agreement with Marriott, according to Brandon Sun. Third parties own the other 25 Delta properties, 10 of which are franchised. The Delta hotels will also be integrated into Marriott's loyalty program and website.

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This is the first big move from Marriott in Canada during 2015, but two weeks ago a report from STR showed that Canada's hotel construction pipeline for December 2014 was up 3 percent over 2013. The largest increase was in the luxury segment, which was up 25.2 percent to 497 rooms.

Ottawa Citizen reported that Canada is getting its first Andaz hotel in 2016, with the Andaz Ottawa ByWard Market. The 200-room hotel will be the 13th Andaz property worldwide. SIXTY Hotels also announced that it will be opening a Montreal property in late 2016, according to Hospitality Net. The hotel will have 120 guestrooms and 70 branded residences.

"Montreal is filled with eclectic and inspiring neighborhoods and offers fantastic global appeal," Jason Pomeranc, co-owner of Sixty Hotels, told Hospitality Net.

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