Marriott International to buy Starwood Hotels for $12.2bn

Marriott International has agreed to buy rival Starwood Hotels & Resorts for $12.2bn in a deal that will create the world’s largest hotel company.

Under the terms of the agreement, Starwood shareholders will receive 0.92 shares of Marriott International and $2 in cash for each share of Starwood common stock.

On a pro forma basis, Starwood shareholders would own around 37% of the combined company’s common stock after completion of the merger.

Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide.

Arne Sorenson, president and chief executive officer of Marriott International, said: “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.

“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.”