Transaction is expected to close mid 2016
In a deal that’s created the world’s largest hotel company, Marriott International has bought Starwood Hotels & Resorts for $12.2bn (£8bn).
As part of the deal, Starwood’s shares are valued at $79.88 each and investors are receiving 0.92 Marriott shares and $2 in cash.
Shareholders will also receive $7.80 per share from the spinoff of SVO, Starwood’s timeshare business, which will leave shareholders with $1.13bn.
Starwood owns the W, Le Méridien, and St Regis brands while Marriott’s portfolio includes its namesake hotels and the Ritz-Carlton brand.
Arne Sorenson, president and chief executive officer of Marriott International, said: “Today is the start of an incredible journey for our two companies. We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we’ll do great things together as The World’s Favorite Travel Company.”
Bruce Duncan, chairman of the board of directors of Starwood Hotels & Resorts Worldwide, said: “Starwood shareholders will benefit from ownership in one of the world’s most respected companies, with vast growth potential further enhanced by cost synergies.”
Here are 5 things you should know about the deal
1. Combined company will have 1.1 million rooms in more than 5,500 hotels
2. The new company will boast hotels in over 100 countries
3. The transaction is expected to close mid 2016
4. Other big bidders for Starwood include US-based hotel operator, Hyatt, a high-profile Chinese leisure group and the London-based InterContinental Hotels.
5. The deal is the biggest acquisition in the hotel industry since 2007, when private equity giant Blackstone bought Hilton for $26bn.