Marriott Hotel Chain is now expanding its wings and has agreed upon a deal to buy Starwood Hotels and Resort Worldwide for a whopping $12.2 billion which will become the world's largest hotel chain including top brands like Sheraton, Westin, The W, Ritz-Carlton and more. Marriott international will pay $72.08 a share in cash and stock for Starwood. The deal will allow Marriot to take over 5,500 hotel with 1.1 million rooms worldwide.
The offer would be a solution to the large query mark that has been growing over Starwood for almost a year. As its stock traded powering its peers, the company’s president and chief executive, Frits van Paasschen, quit the company and was changed by Adam Aron, director, on partial foundation. Starwood stated in April that it was operating on strategic options, such as a potential sale. Since then, there has been growing questions about which company might be a purchaser. In July, the InterContinental Hotels Group was seen in talks to accumulate Starwood, but these rumors were rapidly turned down by InterContinental.
After this deal, Marriot is expected to add three Starwood members to its board. The deal is expected to close in mid-2016. Both Marriott and Starwood have large loyalty benefits for their members - with 54 million associates and 21 million associates, respectively - but the businesses have however to determine when, or how, those two packages will be combined.
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