Marriot to acquire Starwood in $12.2bn deal

Turnberry Hotel

Marriott International has agreed to acquire Starwood Hotels & Resorts Worldwide for $12.2 billion, which will result in the creation of the world’s largest hotel company.

The deal, which is expected to complete mid-2016, will see the company extend to 30 hotel brands, this includes 5,500 hotels (which the companies operate or franchise) with more than a million rooms. The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015, totals over $2.7 billion.

This will affect Edinburgh’s Sheraton Grand Hotel and Trump Turnberry, the latter is currently undergoing a refurbishment.

J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International, said: “We have competed with Starwood for decades and we have also admired them. I’m excited we will add great new hotels to our system and for the incredible opportunities for Starwood and Marriott associates. I’m delighted to welcome Starwood to the Marriott family.”

Bruce Duncan, Chairman of the Board of Directors of Starwood Hotels & Resorts Worldwide, said, “During our comprehensive review of strategic and financial alternatives, it was clear that our talented people, world-class brands, global leadership and spirit of innovation were much admired and key drivers of our value. Our board concluded that a combination with Marriott provides the greatest long-term value for our shareholders and the strongest and most certain path forward for our company. Starwood shareholders will benefit from ownership in one of the world’s most respected companies, with vast growth potential further enhanced by cost synergies.”