Marriott and Starwood sale agreement

US hoteliers Marriott International and Starwood Hotels have agreed a US$12.2bn (£8bn) deal to create the world's biggest hotel company. Combined, the two firms have more than 5,500 hotels with 1.1m rooms and US$2.7bn in annual revenue. A Chinese investor did try to get involved but was outbid.

The two boards have "unanimously agreed" to the deal, under which Marriott will buy Starwood. The tie-up will see them overtake Britain’s Intercontinental Hotels, which handles just under 5,000 properties.

With both companies there is a mixture of owned, managed and franchised properties.

J.W. Marriott, Jr, chairman of the Maryland-based Marriott International, said: "We have competed with Starwood for decades and we have also admired them."

Arne Sorenson, chief executive, Marriott, who will head the new group, said the two firms hoped to become "the world's favourite travel company".

The deal will combine Marriott's 19 brands, including Renaissance, Ritz-Carlton and Fairfield Inn, with Starwood's Le Méridien, Sheraton, St Regis, W and Westin chains best known. Also included, and very important to the deal, is Starwoods ‘Preferred Guest’ loyalty programme, with more than 21m members.  www.marriott.com

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