Page 25 - atoday

BUSINESS A25
Tuesday 17 November 2015

Marriott becomes world’s largest hotelier, buying Starwood

SCOTT MAYEROWITZ with 4,500 properties and veloper to own a Marriott, is “very valued by elite trav- able rooms in the U.S., ac-

AP Business Writer about 735,000 rooms. Hilton, Hyatt and Sheraton elers.” cording to research firm

NEW YORK (AP) — Hotel “To be successful in today’s in the same city. “We will take the best of STR. That’s the highest level

behemoth Marriott In- marketplace, a wide distri- The merger will give Mar- both programs and make since STR started collecting

ternational is becoming bution of brands and hotels riott 30 brands and more sure the bests are pre- data in 1987. Guests paid

served,” he said on the an- an average of $120.35 a

alyst call. The details will be night so far this year. The

worked out in the coming prior record, adjusted for

months. inflation, was $119.70 in

Back in April, Starwood 2008.

announced its board was Marriott, based in Bethes-

exploring strategic options da, Maryland, has been

for the hotel company. The aggressively growing. In

Stamford, Connecticut, April, it acquired Canadi-

company has struggled to an chain Delta Hotels and

grow as fast as its rivals, par- Resorts, helping it become

ticularly in “limited service the largest hotel company

hotels,” smaller properties in Canada.

which don’t have restau- The boards of both compa-

rants or banquet halls. They nies approved the acquisi-

are often located on the tion unanimously, which

side of the highway, near now must be approved

airports or in suburban of- by investors in both hotel

fice parks. chains.

There was speculation in Marriott’s Sorenson will be

the markets about a po- president and CEO of the

tential deal with Holiday combined company and

Inn owner Intercontinental the headquarters will be in

This photo shows a Marriott hotel in Cranberry Township, Pa. Marriott International announced Hotels Group and more re- Bethesda. Marriott’s board

Monday, Nov. 16, 2015, it is buying rival hotel chain Starwood for $12.2 billion in a deal that will cently Hyatt Hotels Corp. of directors following the

secure its position as the world’s largest hotelier. (AP Photo/Gene J. Puskar) But in the end, it was Mar- closing will increase from

even larger, taking over across price points is criti- leverage with corporate riott who prevailed. 11 to 14 members, with

rival chain Starwood in a cal,” Starwood CEO Adam travel departments who of- Starwood’s strong inter- the expected addition of

$12.2 billion deal that will Aron said on a call with ten look for one giant chain national presence will aid three members Starwood’s

catapult it to become the Wall Street analysts. “It ap- to house all of their employ- Marriott. In the past few board.

world’s largest hotelier by a peals to travelers wherever ees. Frequent business trav- years, Starwood has made Marriott said it expects to

wide margin. they may go, leverages elers will also be closely a strong push to grow in deliver at least $200 mil-

The stock-and-cash deal, if marketing and technology watching the deal. Star- China, India, the United lion in annual savings in the

completed, will add 50 per- spend(ing) and strength- wood has a beloved fre- Arab Emirates as well as second full year after clos-

cent more rooms to Marri- ens frequent traveler loy- quent guest program with more-established Europe- ing.

ott’s portfolio and give it alty. Today, size matters.” partnerships with American an destinations. Marriott, in Last month, Starwood an-

more unique, design-fo- Marriott and Starwood — Express, Delta Air Lines and turn, has a well-established nounced the sale of its

cused hotels that appeal like other hotel chains — Uber. Marriott has a much network of hotels including timeshare unit to Inter-

to younger travelers. own very few individual ho- larger program with part- deep coverage of small val Leisure Group, with its

The acquisition is likely to tels. Instead they manage nerships with Chase and towns and cities with its shareholders retaining a

start another round of hotel or franchise their brands United Airlines. Fairfield Inn, Courtyard and 55-percent stake in the

mergers. to hundreds of individual Marriott CEO Arne Soren- Residence Inn brands. company. That deal is ex-

“This causes everybody in owners, often real estate son said he was attracted The deal comes at a time pected to close before the

the business to look around development companies. to Starwood, in part, be- of record hotel occupancy Marriott acquisition, with

and say: we don’t want to Those individual hotel own- cause of its loyalty pro- and rates. Starwood shareholders re-

be the smallest,” said Bjorn ers are responsible for set- gram. He said the members During the first nine months ceiving additional com-

Hanson, a professor at the ting nightly room rates. It skew a little younger than of this year, guests filled pensation for their stake in

Tisch Center for Hospitality, isn’t uncommon for a de- Marriott’s and the program 67.3 percent of the avail- the timeshare business.q

Tourism and Sports Man-

agement at New York Uni- Liberty Global to buy Cable & Wireless for $5.3B in stock
versity.

The latest deal would leave

Marriott with 5,500 prop- DENVER (AP) — Interna- it spun off with a tracking closing price on Oct. 21, to be saved due to Cable

erties and more than 1.1 tional cable TV company stock in July. Combined, the day before Cable & & Wireless’s acquisition of

million rooms around the Liberty Global says it is ac- the entities will have 10 mil- Wireless announced it was Columbus International

world, uniting Starwood’s quiring Cable & Wireless lion subscribers of video, in talks to be acquired by earlier this month.

brands, which include Communications, a Lon- broadband Internet ac- Liberty. Shares of Liberty Global’s

Sheraton, Westin, W and don-based telecommuni- cess, and fixed and mobile Liberty Global CEO Mike non-voting Class C shares

St. Regis, with Marriott’s two cations company with op- phone service. Fries said the acquisition were down 97 cents, or 2.2

dozen brands including erations in the Caribbean, Liberty’s offer amounts to will add scale and man- percent, at $42.61 in after-

Marriott’s Courtyard, Ritz- for stock and a special divi- 78.04 pence ($1.23) per agement depth to its oper- noon trading.

Carlton and Fairfield Inn. dend worth $5.3 billion. share plus a dividend of 3 ations in Latin America and The deal needs to be ap-

The transaction is expect- Liberty Global PLC, which pence per share. The total the Caribbean. The com- proved by shareholders

ed to close in the middle of is controlled by billionaire is 11 percent above the bination is also estimated of both companies. It is

2016. John Malone, said it would average price of Cable & to create cost savings in expected to close in the

The next-largest hotel com- fold Cable & Wireless into its Wireless stock last week, excess of the $125 million quarter ending in June

pany is Hilton Worldwide LiLAC business unit, which and 40 percent above its per year that is targeted next year.q