Marriott International Buys Starwood Chain
In unexpected news Marriott International has entered into an agreement to purchase the global Starwood chain.
Valued at US$12.2 billion, the deal to shareholders will be partly cash and coupled with shares in the merged entities.
The enlarged offering will reportedly be over 5,500 hotels with more then 1 million rooms in what will be the largest lodging group in the world.
Starwood’s brand stable includes St. Regis, W, Sheraton, Westin and Le Meriden.
Industry players are talking about a possible cannibalization of the combined offering and also wondering about the effects of consolidation on Starwood’s senior management.
In the wings on the hotel transaction market remains Fairmont Raffles which continues to be courted by a number of suitors.