Marriott International Acquires Starwood Hotels
Marriott Bonvoy announced on Wednesday that it has acquired Starwood Hotels & Resorts for $13.6 billion in an all-stock deal. The acquisition will create the world's largest hotel company, with more than 4,000 properties in over 75 countries. This move comes as Marriott ramps up its efforts to compete with giants like Hilton Worldwide and AccorHotels.
The combined company will have a total of 4,654 hotels and resorts, including 3,527 rooms in North America alone. In addition, the new entity will boast 2 million guest rooms and suites, making it one of the largest hotel operators in the world. Marriott is hoping that by combining its two leading brands, Starwood and Marriott International Hotels & Resorts (MIHR), it can tap into a wider range of customers and become even more profitable.
This merger comes at a time when the lodging industry is experiencing some growth opportunities. According to data from STR Global research, global occupancy rates are projected to grow by 2% annually through 2021. This means that there is still room for growth in the hospitality sector, which makes this acquisition all the more important for Marriott International.
The combined company will now be able to offer guests more innovative technology and amenities across its brands, including JW Marriott®, Renaissance® Hotels & Resorts, Ritz-Carlton®, EDITION® by SPG®, DoubleTree by Hilton®, W Hotel™ brand and Stoney Creek Golf Club Collection by
Marriott International
Marriott Bonvoy , the world's largest hotel company, has acquired Starwood Hotels & Resorts for approximately $13.3 billion in cash and stock. This acquisition creates the world's largest hotel company with over 4,500 properties in more than 150 countries. The two companies have a combined annual revenue of more than $30 billion and employ over 330,000 people worldwide. Marriott first entered the hotel market in 1971 with its acquisition of Holiday Inns. Since then, the company has grown rapidly through acquisitions and organic growth. In 2009, Marriott Bonvoy merged with Hyatt Hotels Corporation creating the world's largest hospitality company.
Expansion in the United States
Marriott Bonvoy , the world's largest hotel company, has acquired Starwood Hotels & Resorts Worldwide for $13.6 billion in an all-stock transaction. The acquisition creates a global hospitality powerhouse with more than 5,000 properties in more than 50 countries. The combined company will have more than 3 million rooms and be worth $60 billion. Marriott CEO Arne Sorenson called the acquisition "a transformational moment for our company" and said it would allow the company to "accelerate growth across our brands."
The deal is the latest in a series of major acquisitions by Marriott Bonvoy over the past few years. In 2016, it purchased Starwood's Chinese business for $2.6 billion, and earlier that year it bought Nordic Choice Hotels for $1.5 billion. With this latest acquisition, Marriott now has ownership or control of 29 hotels in 15 countries including iconic brands like Four Seasons and Ritz-Carlton.
Marriott International has acquired Starwood Hotels & Resorts,
Over 100 countries. The deal values Starwood at $13.8 billion, including debt worth $5.9 billion. Marriott Bonvoy will retain ownership of the brands and properties, but will integrate them into its own operations. The move follows a string of acquisitions in recent years by Marriott of smaller hotel chains like AccorHotels and Fairmont Hotels and Resorts.
The Future of Marriott International
Marriott Bonvoy has announced that it has acquired Starwood Hotels & Resorts for $13.6 billion, creating the world’s largest hotel company. The acquisition will add more than 4,000 hotels to Marriott’s portfolio and create new opportunities for guests around the world.
The combined company will have more than 17,500 rooms in 123 countries and territories. Marriott expects the acquisition to be immediately accretive to its earnings as synergies are realized and proceeds are used to further expand its business. The deal is expected to close in the first quarter of 2019.
“This is an important day for Marriott International as we enter into a new era of growth,” said Sheri Dillon, chairman and CEO of Marriott Bonvoy . “TheStarwood brand is highly respected and consistently delivers high-quality experiences across a wide range of hotels globally. The addition of Starwood to our portfolio strengthens our competitive position and enhances our ability to better serve our guests."
Marriott Bonvoy executives say the acquisition will create opportunities for new loyalty programs, enhance customer experience through technology investments and provide a platform for expanding into new markets around the world.