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Marriott International has acquired Starwood Hotels & Resorts Worldwide in a $12.2bn (£8bn) deal which creates what is thought to be the world’s largest hotel company.
The deal, which was unanimously approved by both companies’ boards earlier today (16 November), will see the new company operate more than 5,500 hotels, with 1.1 million rooms, across the world.
The acquisition will put Marriott ahead of key competitors Hilton Worldwide and InterContinental Hotel Group (IHG), which have 4,500 hotels (745,000 rooms) and 4,750 (674,000 rooms) hotels across the globe respectively.
JW Marriott Jr, executive chairman and chairman of the board of Marriott, 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.”
Adam Aron, Starwood’s interim CEO, said the company is “excited” to play a role in creating the largest and “best” hotel company in the world, which he said has “tremendous upside potential”.
Commenting on the deal, Mark Wynne Smith, global CEO of JLL’s hotels and hospitality group, said: “This merger has created the world’s biggest player in the hotel sector, opening a big gulf between the next largest players, InterContinental Hotels Group and Hilton.
“We will now start to see further merger activity as other hotel groups seek to match the titanic organisation that Marriott and Starwood have created. Consolidation among the major brand companies has been talked about for a number of years and boards are biting the bullet on the need to merge to achieve further growth in a cost efficient manner.”
The deal, which is expected to be complete by mid-2016, will see the company offer 30 brands including Marriott’s Ritz-Carlton and Fairfield Inn brands, and Starwood’s Westin, W and St. Regis chains.
