The European Commission has approved the transaction through which the American company Marriott International will take over its rival Starwood Hotels & Resorts Worldwide, for $12.4 billion.
The agreement will lead to the creation of the world’s largest hotel group with approximately 30 brands. The new company will own over 5,700 hotels with 1.1 million rooms globally, and Marriott will gain a larger presence in the markets of Europe, Latin America and Asia.
The European Commission investigated the impact of the planned takeover in Barcelona, Milan, Venice, Vienna and Warsaw, where Starwood and Marriott have a significant presence. In these cities, there is strong competition from other hotel chains, the community forum assessed.
Following the transaction, Marriott expects annual savings of $200 million.
Source: Economica
Frequently Asked Questions
What is the value of the Marriott-Starwood deal?
The transaction is valued at $12.4 billion, creating the world’s largest hotel group.
How many hotels will the new group operate?
The combined company will operate over 5,700 hotels with approximately 1.1 million rooms globally across 30 brands.
Which European cities were analyzed for competition impact?
The European Commission investigated the impact in Barcelona, Milan, Venice, Vienna, and Warsaw, finding strong competition in these markets.