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Originally posted by GrayFal
http://news.marriott.com/2015/11/mar...gest-hote.html
http://news.marriott.com/2015/11/mar...gest-hote.html
Marriott International to Acquire Starwood Hotels & Resorts Worldwide, Creating the World's Largest Hotel Company
Marriott and StarwoodCombined Company Will Have 1.1 Million Rooms in More Than 5,500 Hotels,
Spanning the Globe in Over 100 Countries
30 Leading Brands Will Provide Guests Unmatched Choices
Transaction Offers Substantial Economies of Scale
Combined Company Should Deliver Significant Capital Returns to Shareholders
Conference Call with Investment Community at 9:00 am ET, Today, November 16, with Simultaneous Webcast
Marriott and Starwood infographic_R3Bethesda, MD, and Stamford, CT, November 16, 2015 – Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will create the world’s largest hotel company. The transaction combines Starwood’s leading lifestyle brands and international footprint with Marriott’s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio.
. The merged company will offer broader choice for guests, greater opportunities for associates and should unlock additional value for Marriott and Starwood shareholders. Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.
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Transaction Highlights and Strategic Benefits
Summary of Transaction: 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 totals $12.2 billion consisting of $11.9 billion of Marriott International stock, based on the 20-day VWAP (volume weighted average price) of Marriott stock ending on November 13, 2015, and $340 million of cash, based on approximately 170 million fully diluted Starwood shares outstanding at September 30, 2015.
Based on Marriott’s 20-day VWAP ending November 13, 2015, the merger transaction has a current value of $72.08 per Starwood share, including the $2 cash per share consideration.
Starwood shareholders will separately receive consideration from the spin-off of the Starwood timeshare business and subsequent merger with Interval Leisure Group, which has an estimated value of approximately $1.3 billion to Starwood shareholders or approximately $7.80 per Starwood share, based on the 20-day VWAP of Interval Leisure Group stock ending November 13, 2015.
The timeshare transaction should close prior to the Marriott-Starwood merger closing.
http://news.marriott.com/2015/11/mar...gest-hote.html
Marriott International to Acquire Starwood Hotels & Resorts Worldwide, Creating the World's Largest Hotel Company
Marriott and StarwoodCombined Company Will Have 1.1 Million Rooms in More Than 5,500 Hotels,
Spanning the Globe in Over 100 Countries
30 Leading Brands Will Provide Guests Unmatched Choices
Transaction Offers Substantial Economies of Scale
Combined Company Should Deliver Significant Capital Returns to Shareholders
Conference Call with Investment Community at 9:00 am ET, Today, November 16, with Simultaneous Webcast
Marriott and Starwood infographic_R3Bethesda, MD, and Stamford, CT, November 16, 2015 – Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will create the world’s largest hotel company. The transaction combines Starwood’s leading lifestyle brands and international footprint with Marriott’s strong presence in the luxury and select-service tiers, as well as the convention and resort segment, creating a more comprehensive portfolio.
. The merged company will offer broader choice for guests, greater opportunities for associates and should unlock additional value for Marriott and Starwood shareholders. Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.
Download video b-roll, logos, images and infographic.
Transaction Highlights and Strategic Benefits
Summary of Transaction: 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 totals $12.2 billion consisting of $11.9 billion of Marriott International stock, based on the 20-day VWAP (volume weighted average price) of Marriott stock ending on November 13, 2015, and $340 million of cash, based on approximately 170 million fully diluted Starwood shares outstanding at September 30, 2015.
Based on Marriott’s 20-day VWAP ending November 13, 2015, the merger transaction has a current value of $72.08 per Starwood share, including the $2 cash per share consideration.
Starwood shareholders will separately receive consideration from the spin-off of the Starwood timeshare business and subsequent merger with Interval Leisure Group, which has an estimated value of approximately $1.3 billion to Starwood shareholders or approximately $7.80 per Starwood share, based on the 20-day VWAP of Interval Leisure Group stock ending November 13, 2015.
The timeshare transaction should close prior to the Marriott-Starwood merger closing.
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