Marriott International Inc.’s devise to acquire Starwood Hotels Resorts Worldwide Inc. will emanate a world’s largest hotel association and could trigger some-more mergers as rivals manoeuvre to compete.
The understanding announced Monday to combine Marriott and Starwood, valued during about $12.2 billion, would emanate a hotel association with 5,500 hotels and some-more than 1.1 million bedrooms in some-more than 100 countries. The new behemoth would possess 30 hotel brands including a Ritz-Carlton, JW Marriott, Courtyard, St. Regis, W, Sheraton and Westin.
In a hotel world, “it’s a biggest transaction of a lifetime,” pronounced Bjorn Hanson, a highbrow during New York University’s Tisch Center for Hospitality and Tourism.
Bethesda, Md.-based Marriott has about 4,300 hotel properties in a portfolio, many of that are operated as franchises owned by private investors. Stamford, Conn.-based Starwood has about 1,200 hotels, with about half operated as franchises.
In California, Marriott has 312 hotels and Starwood has 71.
Marriott’s distance and extent after a merger could prompt other hotel companies, such as Intercontinental Hotel Group and Hilton Worldwide, to cruise fasten army with smaller operators to equivocate being outpaced.