REG - Marriott Intnl. Inc Elegant Hotels Group - Update to stated post-offer intentions statements

Marriott InternationalAnnouncement

23/06/2020 08:05

RNS Number : 7211Q
  
Marriott International Inc
  
23 June 2020
  
 

Marriott International Inc
 
23 June 2020
 
MARRIOTT INTERNATIONAL, INC.
 
RULE 19.6(B) UPDATE TO STATED POST-OFFER INTENTION STATEMENTS WITH REGARD TO ELEGANT HOTELS GROUP PLC ("ELEGANT")
 
Marriott International, Inc. ("Marriott"), the ultimate parent of International Hotel Licensing Company S.à r.l. ("IHLC"), is providing an update in relation to the statements of intent made at the time of IHLC's acquisition of Elegant pursuant to Rules 2.7(c)(iv) and 24.2 of The City Code on Takeovers and Mergers (the "Code") (the "Stated Intentions"), as set out in IHLC's announcement of 18 October 2019 and the scheme document published on 30 October 2019 (together, the "Offer Documentation"). As reflected in the Offer Documentation, IHLC acquired Elegant for approximately $130 million, and Elegant owns and operates seven hotels with 588 rooms and a beachfront restaurant on the island of Barbados. 
 
This announcement is required under Rule 19.6(b) of the Code.
 
The Stated Intentions as at the date of the Offer Documentation included that IHLC did not intend, amongst other things, to make any material changes to the conditions of employment or the balance of the skills and functions of Elegant's employees as a result of the acquisition. The Stated Intentions also included that IHLC did not intend to make any material headcount reductions within the Elegant Group as a result of the acquisition.
 
In the light of the COVID-19 pandemic, however, Marriott has implemented some necessary changes, including those described below. 
 
As a result of COVID-19's impact on travel and tourism, and various government orders issued in response to the COVID-19 pandemic, in late March 2020, all of Elegant's hotels were temporarily closed. As a result, over 90% of Elegant's property-based employees were placed on furlough arrangements and the remaining employees have largely been employed on a reduced hour basis. 
 
Whilst Marriott did not anticipate making any changes to Elegant's property-based employees as a result of the acquisition, it may become necessary to restructure certain positions within Elegant as a result of the financial impact of the COVID-19 pandemic. No such restructuring decisions have yet been taken.
 
Subject to any further developments related to COVID-19 or further restrictions that may be imposed or extended by government, the hotel closures are expected to be temporary. Subject to relevant laws, the restructuring considerations referred to above, room demand levels and the capacity levels at which the hotels are able to operate, Marriott intends that, over time, the temporary arrangements introduced in March will be modified such that affected employees will, on a staged basis, have the opportunity to return to their roles within Elegant.
 
Consistent with the Stated Intentions, Marriott is still considering potential changes to Elegant's UK and Florida based sales teams. As referred to in the Stated Intentions, after completion of the acquisition, Elegant engaged Sunil Chatrani as a consultant. This consultancy arrangement has now ended.
 
The Stated Intentions also included that IHLC intended to renovate each of Elegant's hotels. The onset of the COVID-19 pandemic has delayed Marriott's planning for the renovations and Marriott cannot currently predict when such renovations will begin. 
 
Enquiries:
Marriott                                                                                                           +1 (301) 380 3000
Connie Kim, Media Relations
Jackie Burka McConagha, Investor Relations
Betsy Dahm, Investor Relations
 
Note on Forward-Looking Statements
All statements in this news release are made as of 23 June 2020. Save as required by law and regulation, Marriott undertakes no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This news release contains "forward-looking statements" within the meaning of federal securities laws, including statements regarding measures Marriott expects to take in response to COVID-19, the duration and impact of steps Marriott has taken or expects to take in response to COVID-19, and the eventual reopening and renovations of each of Elegant's hotels. Marriott cautions that these statements are not guarantees of future performance and are subject to a number of risks and uncertainties that Marriott may not be able to accurately predict or assess, including those identified below and other risk factors that Marriott identifies in its Securities and Exchange Commission filings, including its most recent Quarterly Report on Form 10-Q. Risks that could affect forward-looking statements in this news release include the duration and scope of the COVID-19 pandemic; actions governments, businesses and individuals take in response to the pandemic; the pace of recovery when the pandemic subsides; and the effects of steps Marriott takes to reduce operating costs and/or enhance certain health and cleanliness protocols at its hotels. Any of these factors could cause actual results to differ materially from the expectations Marriott expresses or implies in this news release.
 
 
 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
  END
 
 
OUPPPUCUQUPUPPP