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Delhi has a hotel named Sheraton near Saket shopping mall, which was once a Marriott-belonging to a competing chain. Now the same hotel would have the same management umbrella-its name notwithstanding, once the announcement becomes a legal reality in due course.
Combined, the two competing companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International, reportedly 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.”
Bruce Duncan, Chairman of the Board of Directors of Starwood Hotels & Resorts Worldwide, said: “During our comprehensive review of strategic and financial alternatives, it was clear that our talented people, world-class brands, global leadership and spirit of innovation were much admired and key drivers of our value.”
One-time transaction costs for the merger are expected to total approximately $100 to $150 million, according to reports. Transition costs are expected to be incurred over the next two years. The transaction combines Starwood’s leading lifestyle brands and international footprint with Marriott’s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio.
According to VC Circle, Marriot group which owns or operates 4,300 properties, has bought the Statrwood group for $12.2 billion. As per the terms of the deal, Starwood's shares are valued at $79.88 each, with its investors receiving 0.92 Marriott shares and $2 in cash for each share of Starwood. Marriott will pay $11.9 billion in its own stock and $340 million in cash. The transation is expected to be completed by mid-2016. |