For now, the Wall Street Journal reports, loyalty members of the two companies – 85 million in all – will be able to transfer points between the two programs, but three Marriott points will only match one Starwood point.
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A microsite, members.marriott.com, will launch later today for loyalty programme members.
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. Earlier this year, Marriott and other large operators began a new effort to attract direct bookings to reduce commissions paid to online travel agents, offering discounts to loyal guests and providing perks such as free Wi-Fi. As previously reported, Marriott is confident the company can achieve $250 million in annual corporate cost synergies.
“Marriott’s and Starwood’s guests have shown tremendous loyalty to our brands and now that we are one company, we are seizing the opportunity to reinforce our loyalty to them”, said Stephanie Linnartz, Marriott’s global chief commercial officer.
“These enhanced efficiencies…will encourage new hotel development”. “As new travel destinations emerge, Marriott can be counted on to be there”.
The deal already marks a significant expansion of Marriott’s global footprint by more than doubling its presence in Asia, the Middle East and Africa. It now commands three of the biggest upscale brands in the industry, in Marriott Hotels, Sheraton and Westin, and has a strong portfolio in the luxury sector, with Marriott’s JW Marriott, Ritz-Carlton and Bulgari brands complemented by Starwood’s W Hotels, Edition and St Regis.
Before market open today, Starwood’s shares will cease trading on the New York Stock Exchange.
Aside from the US$13.6bn spent on acquiring Starwood – US$3.6bn of which is in cash -, Marriott is expecting to incur one-off transaction costs of US$140 million.
The headquarters of Starwood Hotels & Resorts Worldwide is located at 1 Star Point Drive in the South End of Stamford. Marriott remains committed to maintaining an investment grade credit rating and to continue managing the balance sheet prudently after the merger.
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Note on forward-looking statements: This communication contains “forward-looking statements” within the meaning of US federal securities laws, including statements about the benefits of the transaction, including expected synergies and enhanced revenue opportunities for the combined company, that are not historical facts. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this communication.
