Marriott to Acquire Starwood Hotels & Resorts Worldwide, Creating the World’s Largest Hotel Company
US hotel chain Marriott International and Starwood Hotels signed a contract worth $12.2 billion , that would create the world’s largest hotel company.
The managements of these companies “unanimously agreed” that Marriott will buy Starwood. Marriott will pay $11.9 billion in shares and the remain of the amount in cash.The completion of the acquisition is expected to happen by the middle of next year.
This agreement will merge 19 brands of Marriott, including the Ritz-Carlton, JW Marriott, Bvlgari and Fairfield Inn, with Starwood chain hotels including the Westin, Sheraton, W and St. Regis. The two companies together will have more than 5,500 hotels, 1.1 million rooms and $2.7 billion revenue.
With the merger, the companies will take the lead of the British hotel chain InterContinental Hotels, which has less than 5,000 hotels.
The CEO of Marriott, Arne Sorenson, who will chair the new group, said the two companies hope will become “a world favorite tourist company”.