The combined Hotel company will have 5,500 hotels with 1.1 million rooms.
Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced to merge. The combined companies will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The new world's largest hotel company will have pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion. The merger was already rumored since a while.
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Marriott will fork over $12.2 billion for Starwood shareholders under the deal.
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. Today is the start of an incredible journey for our two companies. We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we’ll do great things together as The World’s Favorite Travel Company.”
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The first reaction on Twitter are from guests of Marriott or Starwood hotels worrying what will happen to their points.