Marriott International Inc. has agreed in principle to acquire Stamford, Connecticut-based Starwood Hotels & Resorts Worldwide Inc. for a purchase price of roughly $12.2 billion. The acquisition is the largest takeover in the hotel industry since Blackstone Group LP bought Hilton back in 2007 for $26 billion. Marriott will now control Starwood-controlled brands such as Sheraton, Westin, W and St. Regis, The Luxury Collection, Four Points by Sheraton, Le Méridien, Aloft, Element by Westin and the Tribute Portfolio.
“The driving force behind this transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace,” said Marriott CEO Arne Sorenson. “This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders.”
