Starwood has effectively been on the market since late April and finally this week a purchaser came forward.  Much to the surprise of many, Marriott was the one to make the big announcement!

“On Monday, Marriott announced that it would acquire Starwood for $11.9 billion in stock and $340 million in cash. That means cash was used for a mere 2.8 percent of the deal, which is the seventh-lowest percentage on record for cash-and-stock deals greater than $10 billion, according to data compiled by Dealogic.

The deal creates the world’s largest hotel company, with more than 5,500 owned or franchised hotels with 1.1 million rooms around the world.”

Marriott will increase their brand count from 19 to 30.

On the inside, not much will change for Marriott.  “Mr. [Arne] Sorenson would remain president and chief executive of Marriott after the transaction closes and the headquarters will continue to be in Bethesda, Md. Marriott’s board of directors will increase to 14, with the addition of three members from Starwood.”

Details to come on other effects of the merger such as loyalty programs and the already-announced Starwood growth trajectory.