Marriott to acquire Starwood in $12.2B deal

Marriott International, Inc. will acquire Starwood Hotels & Resorts Worldwide, Inc., a $12.2 billion deal creating the world’s largest hotel company. The merged company will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide, across a total of 30 brands. The companies’ combined revenue for the 12 months ended Sept. 30, 2015 totals over $2.7 billion, according to a statement from Starwood. Arne Sorenson will remain president & CEO of Marriott International following the merger and Marriott’s headquarters will remain in Bethesda, Maryland. Marriott’s board of directors following the closing will increase from 11 to 14 members with the expected addition of three members of the Starwood board of directors. The move will also combine the two companies’ loyalty programs – Marriott Rewards and Starwood Preferred Guest – each with 54 million members and 21 million members respectively. The transaction is subject to Marriott International and Starwood Hotels & Resorts Worldwide shareholder approvals, completion of Starwood’s planned disposition of its timeshare business, regulatory approvals and the satisfaction of other customary closing conditions. Assuming receipt of the necessary approvals, the parties expect the transaction to close in mid-2016.