The boards of directors of Marriott International, Inc. and Starwood Hotels & Resorts Worldwide, Inc. have approved a definitive merger agreement under which the companies will create the world’s largest hotel company. News of the agreement was made public on Monday, November 16, 2015.
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. If these approvals are granted, the transaction is expected to close in mid-2016. The combined company will have 1.1 million rooms in more than 5,500 hotels in 100+ countries.
Arne Sorenson, president and Chief Executive Officer, Marriott International, explained that growth is the driving force behind the transaction. “This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace,” he said. “This greater scale should offer a wider choice of brands to consumers, improve economics to owners to owners and franchisees, increase unit growth and enhance long-term value to shareholders… We expect to benefit from the best talent from both companies as position ourselves for the future.”
Adam Aron,interim CEO of Starwood Hotels & Resorts Worldwide, said: “We are excited to play a vital role in the creation of the biggest and best hotel company in the world with tremendous upside potential. The combination of our two companies brings together the best in innovation, culture and execution. Our guests and customers will benefit from so many more options across 30 hotel brands, while our hotel owners and franchisees will derive value from our combined global platform and efficiencies. We are also delighted that our associates will have expanded opportunities as part of a larger organization that is consistently recognized as one of the best companies to work for in the world.”
Complete details of the transaction are available on www.marriott.com/investor and www.starwoodhotels.com/corporate/about/investor/index.html.