Elegant Hotels Group to buy Barbados hotel for $10.5m

AIM-listed Elegant Hotels Group is to buy Treasure Beach Hotel in Barbados for up to $10.5m.

Treasure Beach will be bought through the company’s subsidiary, Treasure SL1, adding to the six hotels and beachfront restaurant in Barbados it already owns.

The acquisition will mean that four of Elegant's properties will account for a continuous 300 metre stretch of the west coast, or ‘Platinum Coast’, of Barbados.

It is conditional on completion of a credit agreement with the Bank of Nova Scotia is expected to be completed before the end of April.

The four-star, 35-room hotel in Paynes Bay will be closed at the end of July to be refurbished and will be re-opened at the start of November as 'Treasure Beach by Elegant Hotels'.

The consideration and renovation costs will be funded from operating cashflow and $8m from an existing credit agreement with the Bank of Nova Scotia.

Chief executive Sunil Chatrani said that Treasure Beach had been a long-term target for the the company and the acquisition was part of a long-term expansion strategy.

Shares in Elegant Hotels Group were down 0.8% to 86.30p at 1137 BST.