Checking In THE LATEST INDUSTRY NEWS FOR HOTEL EXECUTIVES FROM CANADA
AND AROUND THE WORLD
TALENT POOL “Make sure you work for a great company so when they sell it, you get a great employer coming forward,” quipped Bill Pallett, SVP of People Resources at Toronto-based Delta Hotels & Resorts, during his presentation, on retaining and recruiting top talent, at the Hotel Association of Canada conference this past February. The pending transaction between Victoria-based BcIMC and
BRAND POWER
Bethesda, Md.-based Marriott Interna-
Delta Hotels & Resorts prepares to fly the Marriott banner
associates enter the Marriott family.
BY HELEN CATELLIER
“From the employee perspective, it
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gives them a world of opportunity,” said
anadian snowbirds travelling south of the border could soon be booking their stay at a Delta, thanks to new synergies that will accompany a pending ownership change at the hotel brand. Bethesda, Md.-based Marriott International recently signed a definitive agreement to acquire the Delta Hotels & Resorts brand and management and franchise business from a subsidiary of Victoria-based BcIMC for $168 million. “As we are a global institutional investor, we routinely review our investments,” reads an emailed statement from the company. “Current market conditions, combined with the successful repositioning of the Delta brand, has led BcIMC to conclude it is an appropriate time to realize the value of our investments in Delta.” Under the terms of the agreement, BcIMC affiliates will retain ownership of 13 Delta hotels (and one under development) and will sign new 30-year management contracts with Marriott. Third parties own the other 25 Delta properties, including 15 managed and 10 franchised. When the transaction closes (possibly in April) Marriott will become the largest full-service hotel company in Canada with more than 120 hotels and 27,000 rooms. The transaction will introduce Marriott to new markets and capitalize on Delta’s broad customer base. Case in point: the brand has about 94-per-cent Canadian loyalty, according to Michael Beckley, SVP of Lodging Development for Mississauga, Ont.-based Marriott Hotels of Canada. And he wants to capitalize on this allegiance and open units south of the border, since Canadians book 20-million room nights in the U.S. annually. But, there’s more to the equation than that. Although there are ample opportunities to convert existing product in Canada, Delta could expand beyond North America, too. “We’ve got our presidents in Asia-Pacific, Middle East, Africa, Europe, Caribbean and Latin America looking at that opportunity as we speak, and we’ll do so over the next 12 to 24 months,” Beckley explained. In addition to the growth benefits, the agreement will also create operational synergies for owners and franchisees. Delta will be integrated into Marriott’s systems, sales engines, marriott.com and the Marriott Rewards loyalty program, which has 49-million members. “Delta guests will become our guests, not just in Canada but globally,” Beckley noted.
hoteliermagazine.com
tional will see more than 6,000 Delta
Michael Beckley, SVP of Lodging Development for Marriott Hotels of Canada, based in Mississauga, Ont. “We have 4,100 hotels in 79 countries, so the potential for growth from the employee perspective is dramatically different.”
CAN’T BUILD? THEN BUY “There are barriers to entry in getting big full-service hotels built, not the least of which is cost,” said Michael Beckley, SVP of Lodging Development for Mississauga, Ont.-based Marriott Hotels of Canada. “But there are other barriers to entry as well. There are about 18 locations that we’re not in from the Marriott family perspective.” The pending transaction to acquire Toronto’s Delta Hotels & Resorts will bring Marriott into the lucrative Whistler, B.C. market, a location that offers little to no opportunity for new construction.
MARCH/APRIL 2015 HOTELIER
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