Marriott buys Starwood, becoming world’s largest hotel chain

Many analysts are providing their Estimated Earnings analysis for Host Hotels & Resorts, Inc. and for the current quarter 19 analysts have projected that the stock could give an Average Earnings estimate of $0.37/share. To date, there are Element hotels in 14 markets in North America, 1 hotel in Europe with new domestic and global hotels in development.

The merger combines Marriott brands like Ritz Carlton, Courtyard and Residence Inn together with Starwood brands including W Hotels, Westin and Sheraton.

That’s still a dot on the distant hospitality horizon, however, but the first fruits of the newly-minted Marriott-Starwood empire are already here.

Currently Starwood Hotels & Resorts Worldwide, Inc. “We think having more choice in terms of brands and locations is a powerful advantage”.

Conversely, Capuano said Starwood’s Aloft and Element select-service brands may have “a much sharper increase” in US hotels than Marriott’s larger Courtyard and Residence Inn select-service chains.

Referring to the program, he mentioned that the program members generally have higher income and are more loyal toward the brand.

“The most important piece of this is the loyalty program”, said. Marriot silver members will be the equivalent of Starwood’s lowest category, Preferred Plus.

Members can also elect to transfer points at a 3-to-1 ratio (three Marriott Rewards points are equal to one SPG Starpoint) between both programs. They are often located on the side of the highway, near airports or in suburban office parks.

It’s official! After a few weeks of limbo pending approval from China, Starwood and Marriott are officially merging. Antitrust regulators in both the USA and Europe quickly approved this sale but the government of China hesitated delaying it for a number of months.

Mr. Sorenson said he thought his rivals would also look to grow their companies through acquisition, but that it might not be so easy to scale up as quickly as Marriott has. In other words, you can only earn Marriott Rewards points at Rewards participating hotels, and Starpoints at SPG participating hotels.

The purchase hands Marriott more leverage in corporate travel where often times one giant chain is sought after to house all employees. Mr. Sorenson said competition is not really an issue because even where the combined company has the biggest market share – in the United States – it represents only about 15 per cent of the rooms available. The hotel industry has spent the previous year trying to get travelers to book directly with them instead of the travel agencies to avoid paying those fees. “The brand’s success is a result of working hand in hand with owners and developers to bring their independent hotel vision to life”. Starwood has been selling off properties, while singing long-term management agreements for those same hotels. The Company owns properties and conducts operations through Host Hotels & Resorts, L.P., in which the Company holds approximately 99% of the partnership interests (OP units).

“There is always a market for the St. Regis in NY”, he said, adding that other assets in the portfolio have comparable stature. Host Hotels & Resorts, Inc. got Downgrade on 1-Aug-16 where investment firm RBC Capital Mkts Downgrade the stock from Outperform to Sector Perform.

Then there are the 30 brands.

The two groups previously said that the merger could help the duo make up for each other’s deficiencies. “But the great thing for consumers is that right out of the gate, they will be able to link their accounts and match their status from day one”. Marriott has partnerships with Chase and United Airlines, while Starwood has partnerships with American Express, Delta Air Lines and Uber. Marriott has a much larger program with partnerships with Chase and United Airlines. Sorenson said the company did not have any immediate plans to change Starwood’s headquarters in Stamford, Conn., or its offices in NY.

Marriott may have been courting Starwood for the better part of a year, but Sorenson says there are still a number of unknowns.

Marriott International doesn’t expect to have a fully combined loyalty program until 2018.