What to Know About Marriott’s Starwood Deal

GLOBAL REPORT—The announcement that Marriott International will acquire Starwood Hotels & Resorts Worldwide fits Marriott's brand-buying pattern of recent years, as the company grew its footprint by acquiring Gaylord Hotels, Africa’s Protea Hotels and Canada’s Delta Hotels & Resorts.

Those latter three deals were of a similar size and scope ($100 million to $200 million in total consideration, averaging approximately 10 times earnings before taxes, interest, depreciation and amortization), which Marriott President and CEO Arne Sorenson acknowledged during a first-quarter earnings call in May.
 
“We would love to do more deals if there are more deals in that meet those kinds of parameters,” he said. 
 
Which brought Sorenson to Starwood—more specifically, whether Marriott had any interest in acquiring the chain. 
 
“You can see there are quite profound differences between the deals we’ve done and that hypothetical transaction,” he said.
 
Not so hypothetical anymore, Marriott announced its intention to acquire Starwood for $12.2 billion, mostly in the form of stock. Here’s what you need to know about the announcement, the timeline of Starwood’s strategic review and what industry insiders think of the deal. 
 
HNN will continue to update this page as developments occur.

		Marriott-Starwood deal is a 'game changer' By Terence Baker, Reporter, Europe Marriott International’s $12.2-billion takeover of Starwood Hotels & Resorts marks the creation of a new giant in the hotel sector.
		We should have seen Marriott/Starwood coming By Stephanie Ricca, Editor-in-Chief We should have seen it coming that Marriott International would emerge as the likely buyer of Starwood Hotels & Resorts Worldwide.
		Analysts talk Marriott’s new brand overlap By Sean McCracken and Bryan Wroten Analysts said Marriott International might be forced to re-examine brands amid a merger with Starwood Hotels & Resorts Worldwide.
		Infographic: Marriott/Starwood brand overlap By The HNN editorial staff Brand overlap is a looming issue for the combined giant of Marriott and Starwood, and both companies contribute the most might to the upper-upscale and upscale segments.
		Marriott/Starwood must clear loyalty hurdle By Patrick Mayock, Editor For now Marriott Rewards and SPG remain two separate loyalty programs. Eventually combining them will be one of the deal’s biggest challenges—and opportunities.
		Global brand maps for Marriott, Starwood By Stephen R. Hennis, STR Analytics These interactive infographics allow you to see the worldwide distribution of Marriott and Starwood properties and search by class and brand.
		Starwood/Marriott owners optimistic about deal By Sean McCracken and Bryan Wroten Reaction from owners to Marriott International’s planned acquisition of Starwood Hotels & Resorts Worldwide has been largely positive, but questions still loom about property-level impacts.
		The 10 largest hotel companies by room count By the HNN editorial staff Marriott International’s proposed acquisition of Starwood Hotels & Resorts Worldwide will propel it well past the 1-million-room mark.

Year in review: Starwood Hotels & Resorts Worldwide