Marriott International will buy Starwood Hotels & Resorts Worldwide for $12.2 billion to create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection.
The combined company will have over 5,500 hotels with 1.1 million rooms worldwide, giving Marriott greater presence in markets such as Europe, Latin America and Asia and allowing it to better compete with apartment-sharing startups such as Airbnb.
Airbnb, seen as a disruptor for the travel industry, is expected to eat into hotels’ business as it signs up more and more homeowners, analysts warn.
About three-quarters of Marriott’s rooms are in the United States. Markets outside North America had about half of Starwood’s rooms, but accounted for nearly two-thirds of its revenue in 2014.
“Our success has been driven by our ability to anticipate market shifts and meet those changes head on,” Marriott Chief Executive Arne Sorenson, who will lead the combined company, said on a conference call on Monday.
Full content: The New York Times
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