Marriott-Starwood merger: the largest hotels chain born

Marriott International has completed the $17 billion acquisition of the Starwood Hotels & Resorts Worldwide, thus creating the largest hotel group in the world, as the note of the company suggested. Starwood shareholders will receive $ 21 in cash and 0.80 share of Marriott class A common stock for each share of Starwood common stock.

Marriott intends to take the necessary steps to ensure that the Starwood debt is matched by the debt of Marriott International by the end of 2016, in order to maintain the credit rating of investment grade.

The combined company will have a value of $36 billion and 1.1 million hotel rooms. Marriott, a leading lodging company based in Bethesda, Maryland, has more than 4,500 properties in 88 countries and regions. The merger combines Marriott brands like Ritz Carlton, Courtyard and Residence Inn together with Starwood brands including W Hotels, Westin and Sheraton.

Marriott reported revenues of more than $14 billion in fiscal year 2015.

"The increase in efficiency and revenue opportunities should also bringing about an improvement in the profitability of the hotel facilities and strengthen the choice on the part of owners and managers of brands combined company; this will encourage the acquisition of new facilities," Marriott CEO Arne Sorenson said, adding that “Companies like Starwood come up for sale only every few decades.

On Tuesday, Marriott went over the last hurdle to clear,  when announced that it had received the Chinese regulator’s nod, where the merger was under review because it will consolidate many hotels in that country under one operator.