Marriott International will acquire Starwood Hotels & Resorts Worldwide in a $12.2 billion deal that will create the world’s largest hotel company.
The combined entity will boast more than 5,500 hotels and 1.1 million rooms worldwide.
Starwood’s 10 brands – which include W Hotels, Sheraton, Westin and St Regis, will be absorbed in the merger deal.
Commenting on the deal, JW Marriott Jr, Marriott’s executive chairman, said: “We have competed with Starwood for decades and we have also admired them. I’m excited we will add great new hotels to our system and for the incredible opportunities for Starwood and Marriott associates. I’m delighted to welcome Starwood to the Marriott family.”
The Starwood acquisition marks the latest – and by far the most significant – step in Marriott’s recent expansion-through-acquisition strategy. In April 2014, the company completed a US$200 million deal for South Africa’s Protea Hospitality Group, making it the largest hotel chain in Africa, and earlier this year it snapped up Canada’s Delta Hotels & Resorts for US$134m.
Marriott’s bid could still be thwarted by a rival bid, with the Financial Times reporting Hilton as the most likely counter-bidder. Marriott and Starwood have reportedly agreed to a small break-up fee if the deal fails to proceed.
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