The merger between hotel operator Marriott International and Starwood Hotels & Resorts is still in progress according to the companies involved. Marriott recently revised its initial offer which valued Starwood at USD 13.6 billion. The new deal according to Marriott, will benefit Starwood’s shareholders more in the long run.
Marriott is the largest hotel company in the world, with over 4,400 properties in 87 countries. Starwood has a substantial network globally as well, so a deal will better position the companies to maximise their scale and fend off pressure from online travel agents and competition from alternative accommodation providers such as Airbnb.
Starwood rejected the first offer from Marriott after it received a more lucrative offer from a consortium of investors led by Anbang Insurance Group, a Chinese holding company. Following Marriott’s updated offer, Anbang and its partners also revised theirs.