Industry · International · Travel

Marriott checks in at Starwood , buys the iconic chain for $12.2 billion.

Mariott international is buying one its near rival Starwood for a whopping $12.2 billion. This will take Mariott to the pole position way ahead of its any near competitior the Hilton group.The deal would be a cash and stock deal and would increase the overall Marrott’s property by 50%.It would also give them a design edge to counter young audience.With the completion of the deal Marriott would add 5500 properties with more than 1.1 million rooms around the globe.The deal would also add popular starwood brands like Sheraton, Westin, W and St Regis to Marriotts kitty.

In a call to wall street analysts Starwood CEO Adam Aron said “To be successful in today’s marketplace, a wide distribution of brands and hotels across price points is critical.It appeals to travelers wherever they may go, leverages marketing and technology spend and strengthens frequent traveler loyalty. Today, size matters.”

The group is unique in its own way as they manage franchises more as compared to individual hotels.The price of the properties is thus defined by the hotel owner while the company earns through a set percentage of the revenue.The deal would help frequent business travellers and corporate travel departments as they will have more options to leverage the loyalty programs.The deal do comes with the loyalty partnership Starwood had with various players from Travel industry.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s