Marriott is buying Stamford-based Starwood to make the largest hotel company in the world.
Together, the companies will operate or franchise 5,500 hotels with a total of 1.1 million rooms. The company will span 100 countries. The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.Â
Marriott International and Starwood Hotels & Resorts Worldwide announced the deal on Monday. Under the terms of the agreement, at closing, Starwood shareholders will receive 0.92 shares of Marriott International, Inc. Class A common stock and $2.00 in cash for each share of Starwood common stock.
On a pro forma basis, Starwood shareholders would own approximately 37 percent of the combined company’s common stock after completion of the merger using fully diluted share counts as of September 30, 2015. Total consideration to be paid by Marriott is $12.2 billion consisting of $11.9 billion of Marriott International stock
Three Chinese firms reportedly had been vying to take over Starwood: hotel giant Shanghai Jin Jiang International Hotels, sovereign wealth fund China Investment Group and HNA Group, parent company of Hainan Airlines.