Marriott International has entered into an agreement to acquire Starwood Hotels & Resorts Worldwide in a cash and stock transaction valued at $12.2 billion, which will create the world’s largest hotel company.
The boards of both companies have unanimously approved the merger agreement. The resulting company will own 5,500 hotels and a total of 1.1 million rooms across more than 100 countries. The transaction with Marriott is expected to be finalized by mid-2016.
Marriott will pay $11.9 billion in stock and $340 million in cash.
The transaction values each Starwood share at $72.08 per unit, including a takeover offer component of $2 in cash per share.
"We have been in business for a long time, but Starwood has a greater global presence than Marriott," said Arne Sorenson, CEO of Marriott and the individual who will lead the newly formed company.
In July of this year, Starwood held discussions with potential investors, including InterContinental Hotels Group, Wyndham Worldwide, and sovereign wealth funds.
"Our board concluded that a combination with Marriott will generate greater long-term value for our shareholders and a better, stronger future for our company," stated Bruce Duncan, Chairman of Starwood.
In August, the Starwood Hotels & Resorts chain inaugurated the first Sheraton unit on the Romanian market in Bucharest and is negotiating the opening of hotels in Cluj-Napoca and Timisoara.
Starwood Hotels & Resorts Worldwide Inc. is one of the world’s leading hospitality and leisure companies, with nearly 1,200 properties in 100 countries and 181,400 employees within its owned and managed properties.
Among the brands operated by Starwood Hotels & Resorts Worldwide Inc. are St. Regis, Luxury Collection, Westin, Le Meridien, and Sheraton.
Marriott International is also present in Romania through the JW Marriott Bucharest Grand Hotel in Bucharest.
Marriott owns over 4,100 properties and the broadest portfolio of hotel brands in the global industry. Among the company’s brands are JW Marriott, The Ritz-Carlton, Bulgari, and Renaissance.
Source: Capital
Frequently Asked Questions
What is the value of the Marriott-Starwood merger?
The transaction is valued at $12.2 billion, consisting of $11.9 billion in stock and $340 million in cash.
How many hotels will the combined company operate?
The resulting entity will manage 5,500 hotels and 1.1 million rooms across more than 100 countries.
Which brands are included in the new hotel group?
The portfolio includes prestigious brands such as JW Marriott, The Ritz-Carlton, St. Regis, Sheraton, Westin, and Le Meridien.