Marriott acquires Starwood to create world's largest hotel company

Marriott International has announced that it will acquire Starwood Hotels & Resorts Worldwide, creating a combined global company.

Marriott acquires Starwood to create world's largest hotel company
Marriott acquires Starwood to create world's largest hotel company

The boards of directors from both companies have unanimously approved a definitive merger agreement under which the companies will create the world’s largest hotel company.

Together the companies operate or franchise more than 5,500 hotels, with 1.1m rooms worldwide. The combined company’s pro forma fee revenue for the 12 months that ended on September 30, 2015 totals more than $2.7bn (£1.78bn).

One-time transaction costs for the merger are expected to total approximately $100 to $150m (£66 to £99m), while transition costs are also expected to incur over the next two years. Marriott will assume Starwood’s recourse debt at the closing of the transaction.

Arne Sorenson will remain president and CEO of Marriott International following the merger and Marriott’s headquarters will remain in Bethesda, Maryland. Marriott’s board of directors will increase from 11 to 14 members, with the expected addition of three new joiners from the Starwood board of directors.

Sorenson 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. This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders."

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."

More:

JW Marriott opens hotel in Mexico's Los Cabos

Marriott International to debut Edition brand in Dubai

Starwood to open St Regis in Shanghai

• For more breaking news, as well as in-depth features and case studies, sign up to C&IT Magazine's daily Newstracker here


Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Register now
Already registered?
Sign in
Case study: Nickelodeon Kids' Choice Awards

Case study: Nickelodeon Kids' Choice Awards

Pop star Jason Derulo hosted the televised award ceremony at Abu Dhabi National Exhibition Centre.

Influx of association conferences for ACC Liverpool

Influx of association conferences for ACC Liverpool

Venue is set to host three major association conferences for the first time, while confirming return of several others.

3 simple ways to disrupt events

3 simple ways to disrupt events

Many planners mistakenly over-complicate their events, according to Scott Stratten, co-author of UnMarketing.

Answer our corporate event planner survey and win a luxury hotel stay

Answer our corporate event planner survey and win a luxury hotel stay

Complete our quick 10-minute survey to win a stay for two with Iconic Luxury Hotels and inform our State of the Industry report.

Profit and turnover up for Freeman EMEA

Profit and turnover up for Freeman EMEA

Most recent financial year included acquisition of Comotion Consulting and a new managing director for the event agency.

8 things to look out for at IBTM World

8 things to look out for at IBTM World

With the countdown on, what brand new features and events can attendees expect when they descend on Barcelona next week?

'I could have screamed' - the ongoing war against events waste

'I could have screamed' - the ongoing war against events waste

Putting the environment first doesn't have to cost more, says Karen Sutton, CEO and founder of the Global Good Awards.

How the 'Greta Thunberg effect' is impacting events

How the 'Greta Thunberg effect' is impacting events

'We need to approach the challenge of an event's climate impact at multiple levels,' says agency director.

Zaha Hadid's ME hotel to open in 2020

Zaha Hadid's ME hotel to open in 2020

Designed by the celebrated late architect, ME by MeliĆ” will open its first Middle Eastern property in the Burj Khalifa district of Dubai.

7 tips for organising a successful charity event

7 tips for organising a successful charity event

Group of voluntary organisations and a venue finder offer insights for event planners to put together an effective charity event.

LATEST JOBS