By the Caribbean Journal staff
In a landmark deal, Marriott International has announced the acquisition of Starwood Hotels and Resorts Worldwide.
Marriott International paid $12.2 billion in stock and cash in the deal, which creates the world’s largest hotel company.
The new company has hotels in 100 countries across 30 brands.
“The transaction combines Starwood’s leading lifestyle brands and international footprint with Marriott’s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio,” Marriott said in a statement announcing the deal. “The merged company will offer broader choice for guests, greater opportunities for associates and should unlock additional value for Marriott and Starwood shareholders.”
The two companies operate or franchise more than 5,500 hotels with 1.1 million rooms around the world.
The new company’s pro forma fee revenue for the last 12 months ending in September totaled more than $2.7 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 CEO of Marriott International. “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. Today is the start of an incredible journey for our two companies. We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we’ll do great things together as The World’s Favorite Travel Company.”
Sorenson will remain president and CEO of Marriott International following the merger, and Marriott’s headquarters will remain in Bethesda.
The transaction is subject to Marriott and Starwood Hotels and Resorts Worldwide shareholder approvals, along with Starwood’s planned disposition of its timeshare business, which was announced earlier this month.
The deal will include dozens of resorts in the Caribbean region.