Marriott to Buy Starwood, Creating World’s Largest Hotel Chain
by Jessica Montevago /Marriott International Inc. today announced it will buy Starwood Hotels & Resorts in a $12.2 billion deal, creating the world’s largest hotel chain.
Now with a combined presence in more than 100 countries, the merger will help both companies expand its global reach. The combined company will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide.
Marriott currently has three-quarters of its rooms in the United States, while Starwood gets nearly two-thirds of its revenue from outside the country.
Starwood, the parent company of 10 brands including Sheraton, St. Regis, Westin, W, and Le Meridien, said in April it was considering a sale.
Since then, several hoteliers were said to be interested in buying the company. Two Chinese companies, Shanghai Jin Jiang International Hotels and Hainan Airlines’ parent HNA Group, were vying to bid on the chain, and U.S.-based Hyatt Hotels Corporation was reportedly in “advanced negotiations” just last month to acquire Starwood. InterContinental was also rumored to be in the bidding war, though it recently said otherwise.
Marriott expects the merger to increase earnings in its second year.
Arne Sorenson will stay on as president and chief executive of Marriott, and the company’s board will expand to 14, adding three members from Starwood.
The deal is expected to close in mid-2016, the companies said.
Photo courtesy: Marriott
