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The deal resulted in creation of the largest hotel operator in the world. The company will manage more than 5.7 thousand hotels with 1.1 million rooms in more than 110 countries under 30 brands. The merger increased number of Marriott hotels in Asia, the Middle East and Africa more than twice.
The company’s most famous hotels are Carlton, Bulgari, Courtyard, Residence Inn, Marriott Hotels, St. Regis, Le Meridien, Sheraton.
The transaction value is estimated at about $ 13 billion. Marriott International expects that acquisition of the competitor will result in savings of about $ 250 million a year. Full completion of the integration process may take a year or more.
Rumors of a merger of two US hotel giant appeared in the spring of 2016. All the while, the parties have been settling details of the transaction. Earlier in March 2016, Starwood Hotels, consists of 1.3 thousand hotels and 370 000 rooms, received offers from a group of Chinese investors, including insurance holding Anbang Insurance Group, which offered $ 13.2 billion, cutting the original proposal Mariott at $ 12, 8 billion. After that, Starwood Hotels announced its intent to break the deal with the Marriott. This statement forced the latter to raise the offer to $ 400 million, and significantly increase share of the transaction carried out in cash.
During the preliminary trading, the information about completion of the transaction pushed Starwood Hotels shares up 1.3% to $ 76.06. Marriott's shares remained unchanged at $ 63.34.
Marriott’s statement emphasized that creation of the largest hotel chains in the world will benefit shareholders of the companies, and increase efficiency of the business. Already in the second year after completion of the transaction, the total costs should be reduced by about $ 200 million, while revenue will increase significantly due to expansion of the chain, access to new markets for Marriott, and new customers.
"We has competed with Starwood for decades and admired them all the while. I am glad that we will add the new magnificent hotels to our system, and that we will get incredible opportunities from the merger of Marriott and Starwood », - said J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International, Inc.
Starwood Hotels and Resorts Worldwide was established in 1969. Now, the company headquarters in Stamford (CT). More than 1,200 hotels of the operator serve employ than 180 thousand people, about a quarter of whom are US citizens. The company owns famous hotel brands such as Sheraton, W, Le Meridien, Westin, St. Regis and others.
Hotel chain Marriott was founded in 1957, its headquarter is based in Bethesda (Maryland). Total number of employees is estimated at about 200 thousand people.
source: cnbc.com
The company’s most famous hotels are Carlton, Bulgari, Courtyard, Residence Inn, Marriott Hotels, St. Regis, Le Meridien, Sheraton.
The transaction value is estimated at about $ 13 billion. Marriott International expects that acquisition of the competitor will result in savings of about $ 250 million a year. Full completion of the integration process may take a year or more.
Rumors of a merger of two US hotel giant appeared in the spring of 2016. All the while, the parties have been settling details of the transaction. Earlier in March 2016, Starwood Hotels, consists of 1.3 thousand hotels and 370 000 rooms, received offers from a group of Chinese investors, including insurance holding Anbang Insurance Group, which offered $ 13.2 billion, cutting the original proposal Mariott at $ 12, 8 billion. After that, Starwood Hotels announced its intent to break the deal with the Marriott. This statement forced the latter to raise the offer to $ 400 million, and significantly increase share of the transaction carried out in cash.
During the preliminary trading, the information about completion of the transaction pushed Starwood Hotels shares up 1.3% to $ 76.06. Marriott's shares remained unchanged at $ 63.34.
Marriott’s statement emphasized that creation of the largest hotel chains in the world will benefit shareholders of the companies, and increase efficiency of the business. Already in the second year after completion of the transaction, the total costs should be reduced by about $ 200 million, while revenue will increase significantly due to expansion of the chain, access to new markets for Marriott, and new customers.
"We has competed with Starwood for decades and admired them all the while. I am glad that we will add the new magnificent hotels to our system, and that we will get incredible opportunities from the merger of Marriott and Starwood », - said J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International, Inc.
Starwood Hotels and Resorts Worldwide was established in 1969. Now, the company headquarters in Stamford (CT). More than 1,200 hotels of the operator serve employ than 180 thousand people, about a quarter of whom are US citizens. The company owns famous hotel brands such as Sheraton, W, Le Meridien, Westin, St. Regis and others.
Hotel chain Marriott was founded in 1957, its headquarter is based in Bethesda (Maryland). Total number of employees is estimated at about 200 thousand people.
source: cnbc.com
