Monday, November 16, 2015

Marriott International announced Monday, Nov.
16, 2015, it is buying rival
hotel chain Starwood for $12.2 billion in a deal that will secure its position
as the world"s largest hotelier.
(Photo: AP Photo/Gene J.
Puskar,
File)Marriott International and Starwood Hotels and Resorts signed a $12.2
billion deal on Sunday to combine the two companies and create the world"s
largest hotel company.This morning before the market opened Marriott CEO Arne
Sorenson appeared on CNBC"s Squawk Box to provide the first non-press release
answers about the deal.According to Sorenson, Marriott began looking at the
acquisition as soon as Starwood announced its strategic alternative plan seven
months ago.
"We thought it was expensive and initially backed away from it,"
Sorenson said.
"But as the months went by we saw a relative shift in values of
the companies."Related: Marriott Fined By FCC for Messing With Its Guests"
Wi-FiThe relative shift was a 15% downturn in the value of Starwood"s
stock.
At that point, "We became more and more convinced that there was value
we could create having the two companies pulled together," Sorenson said.
The
deal was also more affordable after Starwood announced it would sell off its
timeshare business.
The W Hotel, owned by Starwood Hotels & Resorts Worldwide, is seen in New
York"s Times Square.
Marriott International announced it is buying rival hotel
chain Starwood for $12.2 billion.
(Photo: AP Photo/Mark Lennihan, File)
For
Marriott, Starwood"s global presence in emerging markets made it
attractive.
"It will accelerate our globalization.
Starwood is more global
than Marriott is.
and we think it is a good thing we will have more sources
around the world.
When you look at growth in developing markets like China and
India I think we will see in the long term that contribution is
fabulous."Still, Sorenson added, the deal is "Not principally
China-focused."He also focused on the power of the two hotel giants" loyalty
programs.
"The global piece is powerful.
The value we can get by pulling
together Marriott Rewards and Starwood Preferred Guest for example, these are
the two leading loyalty programs in our industry.
Put them together and spend
that much more on technology and marketing."Related: Points for Cars! Uber
Teams Up With Starwood HotelsA combined Marriott-Starwood will have thirty
hotel brands, many of which overlap considerably, but Sorenson says the brands
will stay.
Mostly: "Our philosophy is to merge these companies as quickly as
we can and run one company.
But we will keep the brands.""To say ‘all"
is a little too soon for that.
Generally I think we will have these
brands.
They are really good, strong powerful brands with great
distribution.
We want to take them, we want to strengthen them, and we want to
grow them faster than they"ve been growing in the past."WATCH: Disneyland
vs.
Disney World: Where You Should Go Right Now
More from Skift:Marriott CEO: There Are No Plans to Shed Any Hotel Brands
Right Now
5 New Travel Startups Making Business Travel More Human6 Aviation
Trends We"re Tracking This WeekLet World traveling club Travel inspire you
every day.
"Watch World traveling club Travel"s original series "A Broad Abroad."
Marriott International announced Monday, Nov.
16, 2015, it is buying rival
hotel chain Starwood for $12.2 billion in a deal that will secure its position
as the world's largest hotelier.
This morning before the market opened
Marriott CEO Arne Sorenson appeared on CNBC's Squawk Box to provide the
first non-press release answers about the deal..A combined Marriott-Starwood
will have thirty hotel brands, many of which overlap considerably, but
Sorenson says the brands will stay.
Mostly: "Our philosophy is to merge these
companies as quickly as we can and run one company.
But we will keep the
brands.""To say ‘all" is a little too soon for that.
Generally I think
we will have these brands.
They are really good, strong powerful brands with
great distribution.
We want to take them, we want to strengthen them, and we
want to grow them faster than they"ve been growing in the past."WATCH:
Disneyland vs.
Disney World: Where You Should Go Right Now
More from Skift:Marriott CEO: There Are No Plans to Shed Any Hotel Brands
Right Now
5 New Travel Startups Making Business Travel More Human6 Aviation
Trends We"re Tracking This WeekLet World traveling club Travel inspire you
every day.
"Watch World traveling club Travel"s original series "A Broad Abroad."
Marriott International announced Monday, Nov.
16, 2015, it is buying rival
hotel chain Starwood for $12.2 billion in a deal that will secure its position
as the world's largest hotelier.
This morning before the market opened
Marriott CEO Arne Sorenson appeared on CNBC's Squawk Box to provide the
first non-press release answers about the deal.

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