Marriott to buy Starwood hotels in $12.2 billion deal, creating world’s

This merger will result in a new world’s – largest hotel company. The merger “has a current value of $72.08 per Starwood share, including the $2 cash per share consideration”. Starwood shareholders will get about $7.80 per share from this spin-off and the business’s subsequent merger.

Starwood shareholders will own approximately 37% of the combined company.

This morning before the market opened Marriott CEO Arne Sorenson appeared on CNBC’s Squawk Box to provide the first non-press release answers about the deal.

In April, Starwood announced that it was working on plans for a turnaround. Most experts took that to mean the company would go up for sale. However, Intercontinental swiftly quashed the rumors by denying any interest in acquiring the hospitality giant. However, talks ended, and the deal never came about. But it hasn’t done anything like the deal it announced today (Nov. 16). Starwood left “no stone unturned” in its process of seeking a buyer, said the sources, who asked not to be named because they were not authorized to speak on the record.

Lazard and Citigroup advised Starwood on the deal and Deutsche Bank Securities advised Marriott.

“The driving force behind this transaction is growth”, Sorenson said in a written statement.

“We have competed with Starwood for decades and we have also admired them”.

“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”. Starwood’s Preferred Guest Program, which is partnered with American Express and 32 airlines, is regarded as the more attractive package compared to Marriott Rewards, analysts say. “I’m delighted to welcome Starwood to the Marriott family”, said J.W. Marriott, Jr., Marriott’s executive chairman and chairman of the board.

Marketing has reached out to Marriott and Starwood for further comments.

Welcome to the new Marriott. The company’s board of directors would increase to 14 after adding three members of Starwood’s board. He will remain in charge after the transaction is complete.

Marriott said the deal would allow it to notch $200 million in annual cost savings annual in the second full year after closing.

Marriott now has more than 2,000 employees at its Bethesda headquarters. The deal will also cause both Starwood’s Sheraton, Westin and St. Regis brands to unite with Marriott’s Courtyard, Ritz-Carlton, Fairfield Inn brands.

The combined company will tout 1.1 million rooms in more than 5,500 hotels throughout more than 100 countries.

Marriott global (MAR) will have the same investment grade credit rating (Baa2) after it purchases Starwood Hotels (HOT), Moody’s Investors Service said in a Monday note.