Marriott International Inc. said Monday that it has agreed to acquire Starwood Hotels & Resorts Worldwide Inc. in a deal worth $12.2 billion that will create the world’s largest hotel company with more than a million rooms globally.
Under the terms, Marriott will forward 0.92 share along with $2 in cash for each Starwood share, for a total of $11.9 billion in stock and $340 million in cash. The transaction has a value of $72.08 a Starwood share.
I can’t say that I am thrilled by this news. I used to stay at Marriott properties almost exclusively and was never all that impressed. There were a few standout locations that I enjoyed staying at but a number of them were poorly maintained or just poorly built (lots of noise through the walls). My Marriott status was Platinum for quite a while but I never saw much benefit from that status and I actually had to deal with Marriott’s rather quick expiry of points more than once.
At the end of the day, these buyouts and mergers are not about you and I the customers but about the shareholders and the health of the business. We will have to wait and see what this means for the different aspects of the rewards and loyalty programs of both hotel chains.