Marriott, Starwood to combine to form world’s largest hotel chain
BUSINESS RECORD STAFF Nov 16, 2015 | 5:30 pm
1 min read time
215 wordsAll Latest News, Retail and BusinessMarriott International Inc. will buy Starwood Hotels & Resorts Worldwide Inc. for $12.2 billion to create the world’s largest hotel chain, with top brands including Sheraton, Ritz-Carlton and the Autograph Collection, Reuters reported.
The combined company will own or franchise more than 5,500 hotels with 1.1 million rooms worldwide and give Marriott a greater presence in markets such as Europe, Latin America and Asia, including India and China. The deal is expected to close in mid-2016, the companies said.
Marriott currently has three-quarters of its rooms in the United States. Starwood, which also owns St. Regis and Aloft hotel brands, gets nearly two-thirds of its revenue from outside the country.
“We have been in the business for a long time, but Starwood is more global than Marriott is,” Marriott CEO Arne Sorenson, who will lead the combined company, told CNBC. “It’s a good thing that we will have more sources (of growth) from around the world.”
Marriott said it expected one-time transaction costs of $100 million to $150 million related to the acquisition, which is expected to add to earnings from the second year after it closes.
Starwood had essentially put itself up for sale in April, when it said it was considering strategic alternatives, taking about 14 percent off its stock up to Friday’s close.
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