STAMFORD, Conn. -- Marriott International, Inc. and Stamford-based Starwood Hotels & Resorts Worldwide, Inc., announced Monday that the boards of directors of both companies have approved a merger under which the companies will create the world’s largest hotel company.
Combined, the companies operate more than 5,500 hotels with 1.1 million rooms worldwide. The combined companies revenue for the 12 months that ended Sept. 30, totaled over $2.7 billion.
Starwood's headquarters is based in Stamford, where it moved in 2012. Marriott International is based in Bethesda, Maryland, where the new company's headquarters will be. Arne Sorenson, president and CEO of Marriott International, will remain president and CEO following the merger.
“The driving force behind this transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace," Sorenson said. "This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders. Today is the start of an incredible journey for our two companies. We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we’ll do great things together as The World’s Favorite Travel Company.”
Based on Marriott’s 20-day VWAP ending Nov. 13, the merger transaction has a current value of $72.08 per Starwood share, including the $2 cash per share consideration. Starwood shareholders will separately receive consideration from the spin-off of the Starwood timeshare business and subsequent merger with Interval Leisure Group, which has an estimated value of more than $1.3 billion to Starwood shareholders or approximately $7.80 per Starwood share.
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.”
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