Marriott International is buying rival hotel chain Starwood for $12.2 billion in a deal that will secure its position as the world's largest hotelier.
According to Wall Street Journal, The combination would create the No. 1 hotel company globally—with more than a million rooms—and bring together 30 brands across all lodging segments, from Starwood’s higher-end ‘W Hotels’, ‘St. Regis’ and ‘Westin brands’ to Marriott’s limited-service offerings like ‘Courtyard’ by Marriott and its extended-stay chain ‘Residence Inn’.
Starwood shares closed 3.6% lower at $72.27 after the deal was announced, while Marriott shares rose 1.4% to $73.72.
J.W. Marriott, Jr, chairman of the Maryland-based company, said, “We have competed with Starwood for decades and we have also admired them”. Marriott chief executive Arne Sorenson, who will head the new group, said the two firms hoped to become the world's favourite travel company, BBC reported.
Starwood put itself on the market in April when board chairman Bruce Duncan said the company planned to explore a full range of strategic and financial alternatives. Reportedly, Hyatt Hotel Company was also in talks to acquire Starwood hotels and resorts.
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