Marriott International Inc. will
buy Starwood Hotels and 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.
The combined company will own or
franchise more than 5,500 hotels with 11 Million rooms worldwide and give
Marriott greater presence in markets such as Europe, Latin America, & Asia
including India and China. 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.
Starwood had essentially put itself
up for sale in April, when it said it was considering strategic alternatives,
taking about 14% off its stock up to Friday’s close. The company which had a
market value of $12.67 Billion had reached out of InterContinental Hotels Group
Plc. Wyndham Worldwide Corp and sovereign wealth funds for a possible deal.
Starwood shareholders will get 0.92
Marriott Class A share and $2 in cash for each share held. They will also get
about $7.80 per share from the spinoff of Starwood timeshare business and
subsequent merger with Interval Leisure Group Inc.
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