Marriott & Starwood are creating world’s largest hotel network

Marriott & Starwood are creating world’s largest hotel network

fullscreen-14jxMarriott International and Starwood Hotels & Resorts have announced corpate consolidation. The world’s largest hotel network will be a result of BLN$12,2 deal, as said in joint companies report. The network will own 1.1 mln rooms in more than 5500 hotels, managed by group or under franchise deals. Hotels are located in more than 100 countries.

United company shall have 30 brands from Marriott group, like Ritz-Carlton, Renaissance Hotels & Resorts and Sheraton, Le Meridien, St.Regis, W Hotels from Starwood.

Starwood stakeholdes shall recieve 0,92 Marriott share & $2 in cash for each share. So Marriot will pay $11,9BLN by shares and $340MLN cash. After the deal Starwood stakeholders will own aprox. 37% of regular shares of united company. Its calculated valued yearly comission income would have been $2,7BLN as 30 september,2015.

Marriott shall acceleate business develovement of Starwood brands using own resources and contats with franchise managers and hotel owners. $200MLN is expected to be saved on expenses in second year after the deal due to growth of effectivity and сutting administrative expidentures. Deal is expected to come in the middle of 2016.

Hyatt hotels was also in negotiations with Starwood. It was announced lat october by CNBC and The Wall Street Journal.  WSJ also said that three chinese companies where interested in deal, including Shanghai Jin Jiang International Hotels (Group); but they had to make arrange things with each other and Beijing first, because chinese government loves to see business merging deals with only one chinese offer.

Тогда же Адам Эйрон, исполняющий обязанности гендиректора Starwood, во время телеконференции с аналитиками сказал, что компания вскоре намерена завершить как рассмотрение вариантов стратегического развития, так и поиск гендиректора. «Я удивлюсь, если не смогу дать вам окончательных ответов в ближайшие два месяца», – заявил Эйрон.

United Marriott and Starwood  «have an incredible growth potential», said Adam Eiron, Starwood managing director, this monday: «We can offer much more options to our guests and clients with 30 hotel brands, as united global platform and our skill can help holel owners and franchise manage find en extra income».

Source: vedomosti.ru