By the same token, I think we’re likely to have some Marriott team members end up in, for example, Starwood’s offices in NY and probably in Stamford too, for that matter.
Advertisement
Marriott may have been courting Starwood for the better part of a year, but Sorenson says there are still a number of unknowns.
The company said Friday that it will match member status across the Marriott Rewards and Starwood Preferred Guest (SPG) programmes, allowing users to transfer points between the two to claim benefits.
However, members of Starwood’s best-in-class loyalty programme are anxious that the takeover deal would impact their benefits, some of which include suite upgrades, personal concierge and complimentary champagne, the Wall Street Journal reported. With the completion of this acquisition, Marriott’s distribution has more than doubled in Asia and the Middle East & Africa combined.
Each Starwood point will reportedly be worth three Marriott Rewards points for guests.
Marriott CFO Leeny Oberg said on Friday’s conference call that Marriott will try to sell Starwood’s owned hotels while retaining the management and branding contracts.
Mr. Sorenson said the Canadian market has been a “steadier performer” for the company than many others around the world in recent years, because the economy did not take as deep a hit as in many other countries. The accounts will be linked at Marriott.com. Three equity analysts rating the company a strong buy, seven equity analysts rating the company a buy, twelve equity analysts rating the company a hold, one equity analyst rating the company a underperform, and finally one equity analyst rating the company a sell with a one year target of $76.16. It has also added two former Starwood directors-Eric Hippeau, partner at Lerer Hippeau Ventures and Aylwin Lewis, chairman and CEO of Potbelly Corporation.
It confirmed seven new signings that will increase its footprint to almost 30 hotels worldwide.
“We may have been a little too optimistic about how fast we could get this thing closed”, Sorenson said Thursday.
The purchase gives Marriott more leverage with corporate travel departments who often look for one giant chain to house all of their employees.
One-time transaction costs for the merger are expected to total approximately $140 million. The company has not indicated whether it plans to stay in Maryland.
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. For instance, in China, where Starwood brands have a greater presence, the parent company will emphasize opening hotels under Marriott’s legacy brands.
Advertisement
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.
