BETHESDA, Md., Sept. 23, 2016 /PRNewswire/ -- Marriott
International, Inc. (NASDAQ: MAR) has completed its acquisition of
Starwood Hotels & Resorts Worldwide, Inc., creating the world's
largest and best hotel company. Marriott now offers the most
comprehensive portfolio of brands including leading lifestyle
brands, a significant global footprint, and leadership in the
luxury and select-service tiers as well as the convention and
resort segment. Beginning today, Marriott will match member status
across Marriott Rewards – which includes The Ritz-Carlton Rewards –
and Starwood Preferred Guest (SPG), enabling members to transfer
points between the programs for travel and exclusive experiences
when they link their accounts later today. (For Consumer
Information: Marriott International's Expanded Portfolio of 30
Leading Brands Sets New Global Standard for Unrivaled Travel
Experiences and Expanded Loyalty Benefits.)
"Throughout our nearly 90-year history we have never stopped
searching for innovative ways to serve our guests. With the
addition of Starwood's strong brands, great properties, and
talented people, we have dramatically expanded our ability to
provide the best experiences to our customers. We also
welcome the tremendous responsibility as the world's largest hotel
company to be a good global steward, providing new opportunities
for our associates and building the economic strength of the
communities we call home," said J.W. Marriott, Jr., Executive
Chairman and Chairman of the Board of Marriott
International.
"We believe that Marriott now has the world's best portfolio of
hotel brands, the most comprehensive global footprint, and the most
extensive loyalty programs, providing an unparalleled guest
experience. Combining Starwood's brands with ours better enables
Marriott to reach our goal of having the right brand in the
right place to serve our loyal guests and welcome new ones,"
said Arne Sorenson, President and
Chief Executive Officer of Marriott International. "We can now
provide a better range of choices for our guests, more
opportunities for our associates, and greater financial benefits
for our owners, franchisees, and shareholders."
The new company will operate or franchise more than 5,700
properties and 1.1 million rooms, representing 30 leading brands
from the moderate-tier to luxury in over 110 countries. With the
completion of this acquisition, Marriott's distribution has more
than doubled in Asia and the
Middle East & Africa combined.
Best-in-Class Loyalty Programs
Marriott Rewards – which includes the Ritz-Carlton Rewards – and
SPG are the most recognized and awarded loyalty programs in
hospitality. Together, these programs will offer members more
benefits when they link their accounts, as well as new destinations
such as Aruba, Tuscany's Serchio Valley and Kruger National
Park in South Africa for SPG
members and the Maldives,
Bora Bora and Santorini,
Greece for Marriott Rewards and
The Ritz-Carlton Rewards members.
"Marriott will draw upon the very best each program offers and
we can't wait to show the loyal members of these programs the power
and benefits of Marriott and Starwood coming together," said
Stephanie Linnartz, Executive Vice
President and Global Chief Commercial Officer.
Marriott will launch a microsite later today,
www.members.marriott.com, for all members of the combined company's
loyalty programs to learn more about the reciprocal benefits now
available and to link accounts.
Transaction Benefits
Marriott's acquisition of Starwood enables the combined company
to expand the scope of its distribution and portfolio while
deploying its larger scale to realize cost efficiencies in its
corporate and property operations. As previously stated, Marriott
is confident the company can achieve $250
million in annual corporate cost synergies. Additional
synergies at the property level should come in the form of
leveraging scale in operations and sharing best
practices. Combined sales expertise and improved account
coverage are expected to provide both enhanced efficiencies and
increased revenue opportunities for managed and franchised
properties.
"These enhanced efficiencies and revenue opportunities should
drive improved property-level profitability as well as greater
owner and franchisee preference for the combined company's brands,
which will encourage new hotel development," Sorenson said. "As new
travel destinations emerge, Marriott can be counted on to be
there."
One-time transaction costs for the merger are expected to total
approximately $140 million. Marriott
intends to take the steps necessary to cause Starwood's outstanding
public debt to be pari passu with the outstanding public
debt of Marriott International. Marriott remains committed to
maintaining an investment grade credit rating and to continue
managing the balance sheet prudently after the merger.
New Board Members and Shares Listing
Effective today, Marriott's Board of Directors has increased
from 11 to 14 members, with the addition of Bruce Duncan, Chairman, President and CEO of
First Industrial Realty Trust, Inc., Eric
Hippeau, Partner, Lerer Hippeau Ventures; and Aylwin Lewis, Chairman and CEO of Potbelly
Corporation. Messrs. Hippeau and Lewis are also former Starwood
board members. Full biographies on each of the three new Board
members are available at www.Marriott.com/investor.
Before market open today, Starwood's shares will cease trading
on the New York Stock Exchange. As previously announced, Starwood
shareholders will receive $21.00 in
cash and 0.80 shares of Marriott International, Inc. Class A common
stock for each share of Starwood Hotels & Resorts Worldwide,
Inc. common stock.
Arne Sorenson remains President
and Chief Executive Officer of Marriott International, and
Marriott's headquarters continues to be located in Bethesda, Maryland.
Advisors:
Lazard and Citigroup were financial advisors to Starwood Hotels
& Resorts Worldwide and Deutsche Bank Securities and Goldman
Sachs were the financial advisors to Marriott International.
Cravath, Swaine & Moore served as legal counsel to Starwood
Hotels & Resorts Worldwide and Gibson, Dunn & Crutcher
served as legal counsel to Marriott International on the
transaction.
Note on forward-looking statements: This communication
contains "forward-looking statements" within the meaning of U.S.
federal securities laws, including statements about the benefits of
the transaction, including expected synergies and enhanced revenue
opportunities for the combined company, that are not historical
facts. We caution you that these statements are not guarantees of
future performance and are subject to numerous risks and
uncertainties, including the "Risks Related to the Starwood
Combination" and other risk factors that we identify in our most
recent quarterly report on Form 10-Q that we filed with the U.S.
Securities and Exchange Commission. Any of these factors could
cause actual results to differ materially from the expectations we
express or imply in this communication. We make these
forward-looking statements as of the date of this communication,
and undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
IRPR#1
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SOURCE Marriott International, Inc.