The deal will combine numerous world’s biggest hotel brands, including Ritz Carlton, Courtyard and Residence Inn from Marriott, and W Hotels and Sheraton from Starwood.
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“A major reason we’re doing this deal is the loyalty programs”, Marriott Chief Executive Officer Arne Sorenson said earlier this year.
Arne Sorenson remains as president and CEO of Marriott International, and the company’s headquarters continue to be located in the U.S. state of Maryland.
According to Fortune, Marriott said it will continue operating the two programs for at least the next two years before eventually phasing out Starwood’s Preferred Guest (SPG) loyalty program. “The Starwood purchase has more than doubled our India footprint”, said Marriott’s Asia-Pacific head Rajeev Menon.
Marriott has thrived as an “asset light” company, owning a handful of hotels. “If we can offer them a place to stay no matter where they’re going physically, no matter what level of luxury they want, we make that program that much stronger”, Sorenson said.
The new company will operate or franchise more than 5,700 properties and 1.1 million rooms, comprising 30 brands in more than 110 countries.
In November 2015, Marriot and Starwood announced their plans to merge the two companies.
“Beginning now, we’re drawing upon the best of our loyalty programs by enabling members to join or link their accounts and immediately receive reciprocal status and benefits”. Messrs. Hippeau and Lewis are also former Starwood board members.
Marriott International Inc (MAR) was Reiterated by Telsey Advisory Group to “Market Perform” while Lowering the Price Target of the company shares to $ 70 from a previous price target of $74.
16 number of analysts also provided their insight on Starwood Hotels & Resorts Worldwide, Inc., where the Average Price Target for the stock is $78.94. It reassures franchisees that they can expect better corporate sales expertise and improved account coverage and support with the combined organization. “As new travel destinations emerge, Marriott can be counted on to be there”.
“The expectation is that we will keep these brands and try to emphasize the distinctions between them”, he said.
One-time transaction costs for the merger are expected to total approximately $140 million.
The new company will keep Marriott’s Bethesda, Maryland headquarters but hasn’t announced if it will keep any presence at Starwood’s CT or NY offices.
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“It’s one of the many reasonable and positive steps that Marriott has taken along the way as it acquires Starwood”, Leff said.
