Marriott Hotels acquires Starwood in £8 billion deal
Marriott Hotels and Starwood Hotels & Resorts have announced the merger of the two brands, in a move that will create the world’s largest hotel company.
The £8 billion (US$12.2bn) agreement sees the Marriott group acquire Starwood. Combined, the two hotel groups operate more than 5,500 hotels with 1.1 million rooms around the world.
Arne Sorenson, president and chief executive of Marriott International, said: “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."
The 11 brands under the Starwood Hotels & Resorts umbrella include the Sheraton, Westin, St Regis, The Luxury Collection, W Hotels, and Le Meridien hotels.
The 19 brands that form the Marriott portfolio range from the Ritz Carlton, Edition and Bvlgari hotels, to the Autograph Collection, Renaissance Hotels and JW Marriott.
Bruce Duncan, chairman of the board of directors of Starwood Hotels & Resorts Worldwide, said: “Our board concluded that a combination with Marriott provides the greatest long-term value for our shareholders and the strongest and most certain path forward for our company."
The combined revenue generated by the two companies for the year ending September 30 was £1.8 billion (US$2.7bn). The merger is subject to a number of conditions, including the approval of the Marriott and Starwood shareholders.
Provided all approvals are granted, the merger is expected to close by the middle of next year.
Image: The The Westin New York Grand Central