On November 16, Marriott International, Inc. (NASDAQ:MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced that their boards of directors approved the merger of the two companies, an action leading to the creation of the world’s largest hotel company.
The transaction combines Starwood’s famous brands, which cover important luxury hotel market niches, and their international reach with Marriott’s strong presence in classic hotel markets, giving rise to a much more comprehensive portfolio.
Together, the companies operate or franchise a total of 5,500 hotels with 1.1 million rooms. The combined annual revenue of the two companies as of the end of September 2015 exceeds $2.7 billion.
The transaction value is estimated at approximately $12.2 billion. Starwood shareholders will receive 0.92 Marriott Class A shares and $2 in cash for each Starwood share held. Starwood shareholders will own 37% of the new hotel group’s shares.
Source: Fivestar Hospitality
Frequently Asked Questions
What is the value of the Marriott-Starwood merger?
The transaction is estimated at approximately $12.2 billion, leading to the creation of the world’s largest hotel company.
How many hotels will the new entity operate?
Together, the two companies operate or franchise a total of 5,500 hotels, comprising 1.1 million rooms.
What do Starwood shareholders receive following this transaction?
They will receive 0.92 Marriott Class A shares and $2 in cash for each Starwood share held, owning 37% of the new group.