Marriott Int’l. Buys Starwood
Last week’s announcement that Marriott Int’l. has bought Starwood Hotels & Resorts Worldwide has created the world’s largest hotel company. The $12.2 billion merger will see Marriott operate more than 5,500 hotels across 30 hotel brands; Starwood’s 11 brands include Sheraton, Westin, St. Regis and W hotels. The deal was unanimously approved by the boards of both companies Nov. 16.
Consolidation is an ongoing trend in the hotel industry, a fact acknowledged by Arne Sorensen, who remains as President and CEO of Marriott Int’l. He said buying up a competitor in the hotel space would enhance Marriott's 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 longterm value to shareholders,” he said.
Marriott has expanded rapidly over the last few years, acquiring the Canadian operator Delta Hotels in January, launching its new Moxy brand in 2014 and rapidly expanding its Autograph collection.