Marriott International will acquire Starwood Hotels and Resorts in a deal believed to be worth $12.2 billion, and when it was first announced consumers weren’t the only ones taken by surprise by the news. Analysts and investors expressed surprise at the acquisition.
The move will form the largest hotel group in the world, and whatever your thoughts on it, here are five things you need to know about the deal…
– Marriott weren’t the only suitors for Starwood, Intercontinental Hotels and Hyatt Hotels had long been vying to buy out the company.
– The acquisition will offer up thousands more rooms to choose from when booking. Combined, the group will own more than 5,500 hotels worldwide, 30 distinctive chains and more than a million guest rooms.
– Due to anti-competitive issues in China, and at the request of the Chinese Ministry of Commerce (MOFCOM), Marriott and Starwood have agreed to extend the time period for MOFCOM to complete its review of the merger transaction. This additional review period, known as phase three, could last up to 60 days.
– Starwood and Marriott can actually mutually agree to terminate the merger agreement, even with stockholder approval. The deal’s kill date is open until 31 December of this year. However, there’s the matter of a $400-million termination fee if either side decides to end the deal.
– When Marriott’s takeover of Starwood is complete, the chain will have 30 hotel brands.