The boards of directors of Stamford-based Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc., based in Bethesda, Md., have unanimously approved a $12.2 billion deal the companies are calling a definitive merger agreement under which they will create the world”™s largest hotel company.
In a joint statement Nov. 16 announcing the deal, Starwood and Marriott said the combined company will have 1.1 million rooms in more than 5,500 hotels in more than 100 countries. The deal involves 30 brands and will offer “substantial economies of scale,” the companies said. The combined company”™s pro forma fee revenue for the 12 months ended Sept. 30 totals over $2.7 billion.
“The transaction combines Starwood”™s leading lifestyle brands and international footprint with Marriott”™s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio,” the companies said.
The merged company will offer broader choices for guests, greater opportunities for associates and should unlock additional value for Marriott and Starwood shareholders, according to the statement.
Under the terms of the agreement, at closing, Starwood shareholders will receive 0.92 shares of Marriott International Inc. Class A common stock and $2 in cash for each share of Starwood common stock.
Starwood shareholders would own approximately 37 percent of the combined company”™s common stock after completion of the merger.
Total consideration to be paid by Marriott totals $12.2 billion, consisting of $11.9 billion of Marriott International stock and $340 million in cash.
Starwood Hotels & Resorts Worldwide in 2011 relocated about 800 employees from 1111 Westchester Ave. on the Platinum Mile in White Plains when it opened its new Harbor Point headquarters in Stamford.
