Marriott International To Buy Starwood Hotel & Resorts For $12.2 Billion

Marriott buying Starwood for 12 billion dollars

Marriott International on Monday announced plans to acquire Starwood Hotels & Resorts Worldwide.

The deal is valued at $12.2 billion and will create the world’s largest hotel company.

Under the terms of the deal, Starwood shareholders will receive 0.92 shares of Marriott Class A common stock and $2 in cash for each share of Starwood common stock.

Shares of Starwood jumped 4% in premarket trading immediately following the announcement.

The acquisition comes at an interesting time in the hotel industry. Marriott International is facing increasing competition from AirBnB and other economy-sharing based platforms.

AirBnB was recently given a private valuation that makes it more valuable than Marriott.

While customers are flocking to AirBnB locations, hotel chains are fighting back by going after business customers and serious travels who prefer the amenities of hotels, and daily offerings such as turnover services and morning newspaper delivery.

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Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.