A week ago, US hotel group Marriott International, Inc. and Starwood Hotels & Resorts Worldwide, Inc. announced today that their respective boards of directors unanimously approved a definitive merger agreement of both companies.
Marriott International, Inc. has more than 4,300 properties in 85 countries and territories. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,270 properties in some 100 countries. Together the new “Marriwood” is dubbed to become the world’s largest hotel company. Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide with 30 different brands. The combined company’s pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.
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.
In Southeast Asia, the new entity will particularly be dominant in Indonesia and Thailand. Once the merger effective, “Marriwood” will have a portfolio of 41 hotels in Thailand and 29 hotels in Indonesia. Both chains are present in seven ASEAN member countries with Myanmar joining the company’s portolio from 2017 with the opening of a Sheraton in Yangon. In total, the combined force of Starwood and Marriott manage a portfolio of 101 hotels in the region at the end of 2015.
More hotels are due to open until 2020. Starwood alone plans to open 13 new hotels in Indonesia, 5 in Malaysia, 4 in the Philippines and in Vietnam, 3 in Thailand and 1 in Myanmar as well as in Singapore.