Buying Starwood increases Marriott’s market share outside the US and gives it more luxury and lifestyle hotels, including the W chain.
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“We think there are real advantages to size”, said Marriott Chief Executive Arne Sorenson. And of course the deal, which Marriott says will take about two years to complete, also helps the company cut costs.
Financial Times reported that The 21 analysts offering 12 month price targets for Marriott International Inc have a median target of 78.00, with a high estimate of 87.00 and a low estimate of 56.00.
Starting today, loyalty members will be able to link their Marriott Rewards and SPG accounts by going to members.marriott.com, where they’ll also be able to transfer points and match their elite status on either platform.
Insider Activity: Insiders look pessimistic about the prospects of the company that they seem to offload shares while they are 6.91 up so far this year.
The merger sees the creation of the world’s largest hotel group, with over 5,700 properties under 30 brands in more than 110 countries. Four Points by Sheraton, like all brands within Starwood’s portfolio, is proud to offer the Starwood Preferred Guest® program, the industry’s richest loyalty program.
Each Starwood point will reportedly be worth three Marriott Rewards points for guests.
“Nothing changes immediately”, Sorenson said.
Price Momentum: Despite the -0.31% decrease in value, the stock’s new closing price represents a -13.9% fall in value from company’s one year high of $18.56. Other synergies should come in the form of leveraging operations and sharing best practices.
“We may have been a little too optimistic about how fast we could get this thing closed”, Sorenson said Thursday. Equities research analysts predict that Host Hotels & Resorts Inc. will post $1.66 earnings per share for the current year.
Starwood and Marriott, as with other chains, own very few hotels instead they franchise or manage their brands to individual owners.
Most of the new properties are in the United States and Europe, but the brand continues its global expansion as well, with its first hotels in Singapore and Bali. “As new travel destinations emerge, Marriott can be counted on to be there”.
In conjunction with the merger closing, Starwood expects its shares will cease trading on the New York Stock Exchange before market open on September 23, 2016.
The $13.6B merger between Marriott and Starwood cleared its final hurdle this week when it received antitrust approval, and the deal is expected to be finalized before week’s end.
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More than 15,000 of Marriott’s 206,000 worldwide employees are in the D.C. region, many of whom are at its longtime Bethesda headquarters, making it the region’s seventh largest nongovernmental employer.
