It comes almost a year after the deal was first announced, resulting in a bidding war between Marriott and the Chinese-led Anbang consortium for control of Starwood. And of course the deal, which Marriott says will take about two years to complete, also helps the company cut costs. The issue has raised concerns that the Marriott and Starwood brands – some of which sought to attract the same type of traveler – will continue to compete against one another. Members will be able to transfer loyalty reward points between the programs for travel and exclusive experiences when they link their accounts later today. Between the three programs, he said, “Our loyalty base is without parallel and the programs are best in class”.
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Marriott hotels are known for their luxury appeal, as are Starwood’s roster; it’s essentially a merger of the some of the world’s most premium hotels.
Starwood board members Eric Hippeau and Aylwin Lewis have been appointed to the Marriott board, which also has another member, Bruce Duncan, who is chairman, president and CEO of First Industrial Realty Trust, Inc.
One way Marriott can leverage itself is with online travel agencies such as Ctrip, Alitrip, Booking.com, and Expedia.
In all, 30 different hotel brands will now be under just the Marriott umbrella creating the largest chain of hotels in the world with over 5,800 properties and more than 1.1 million rooms across 110 countries.
“Where a lot of owners and developers that we partner with would typically have other options where they can.work us against each other, they’re in a place where there aren’t that many brands left to choose from that have a global distribution reach”, Allie said.
“These enhanced efficiencies and revenue opportunities should drive improved property-level profitability as well as greater owner and franchisee preference for the combined company’s brands, which will encourage new hotel development”, Sorenson said. The company’s revenue was up 1.4% compared to the same quarter a year ago.
The counter offer from Anbang prompted Marriott to raise its offer.
In addition, the merger comes with a 3-to-1 exchange rate that has been deemed equal; every Starwood point is worth three Marriott Rewards points.
While Marriott was committed to staying the D.C. region, according to Sorenson, whether the company planned to stay in Maryland was less clear.
In related news, SVP Brian G. Macnamara sold 6,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 2nd.
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Host Hotels and Resorts Inc (HST) made into the market gainers list on Tuesdays trading session with the shares advancing 0.06% or 0.01 points.
