The management board of Design Hotels, Berlin, reported on Thursday that Marriott DH Holding AG submitted a formal request to acquire the outstanding shares of the consortia, which would allow Marriott International to operate the brand as wholly owned.
The “merger squeeze-out,” as the Design Hotels release termed it, will require a general meeting and shareholder approval of a reasonable cash offer. Marriott DH Holding has requested that a conclusion of the potential deal be made within three months.
A spokesperson for Marriott International confirmed this news, stating, “Marriott now has 95% ownership of Design Hotels shares and German law permits a company owning 90% or more to initiate a process to obtain the remaining shares.”
The Marriott spokesperson added that subject to approvals, Design Hotels will operate as a wholly owned Marriott brand rather than as a separate public company.
A Design Hotels spokesperson told HOTELS, “As the merger squeeze-out is a corporate organizational development and we do not plan changes to the way we operate the business, there is no impact to the senior leadership team.”
Contractually, nothing will change for member hotels, according to Design Hotels. “Our 330-plus members will remain part of our global and unrivaled community of independent, design-driven hotels that function as social hubs and spaces for purposeful experiences,” the spokesperson said. “Having Marriott International as the future sole owner, Design Hotels members can expect additional benefits and opportunities to obtain a greater and more selective reach and to take advantage of new programs and practices in size and scale.”