Marriott to Acquire Starwood, Forming World’s Largest Hotelier
Marriott International announced a $12.2 billion deal to acquire Starwood Hotels and Resorts that will create the world’s largest hotel company on Monday. The combined company will have over 1.1 million rooms in more than 5,500 hotels in 100 countries.
The transaction, which has been approved by the boards of directors of both companies, will operate under the Marriott name with a total of 30 brands, although some brands may be combined as the merger moves forward. It will require U.S. government approval although the combined company will have less than 15% of the U.S. market.
Under the terms of the transaction, Starwood shareholders will receive 0.92 share along with $2 in cash from Marriott, for a total of $11.9 billion in stock and $340 million in cash. Starwood shareholders will also receive an additional $7.80 per share from the spinoff of Starwood’s timeshare business, which is being spun off and merging with Interval Leisure Group, a transaction also announced Monday.
“This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders,” said Arne Sorenson, Marriott’s CEO. “I know we’ll do great things together as The World’s Favorite Travel Company.”
(Photo: Accura Media Group)