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Marriott International on Monday (16 November) announced that it will acquire Starwood Hotels & Resorts Worldwide, to create the world’s largest hotel chain. The cash and stock deal between the two hotel operators is valued at US$12.2 billion (S$17.37 billion).
“The driving force behind this transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace,” said Arne Sorenson, President and Chief Executive Officer of Marriott International.
The transaction combines Starwood’s brands including W Hotels, St. Regis and Westin, and Marriott’s 19 hotel brands, as well as the convention and resort segment, into one portfolio.
Under the terms of the agreement, at closing, Starwood shareholders will receive 0.92 shares of Marriott International Class A common stock and US$2.00 in cash for each share of Starwood common stock, the joint statement said. This translates into US$72.08 per share for Starwood.
It is noted that earlier this year, Starwood revealed that it was considering strategic options, reaching out to potential bidders Wyndham Worldwide, InterContinental Hotels and sovereign wealth funds in July.
The transaction is expected to close mid-2016.
(Source: Marriott International and Starwood Hotels & Resorts)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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