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Why not buy Starwood?

 
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Old Nov 2, 2015, 5:51 am
  #1  
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Why not buy Starwood?

It is all over the news these days: Hyatt is in talks to take over Starwood. I wonder why Marriott did not step up their game and try to take over them.

They would be a perfect fit for one another since Starwoods biggest problem is their limited availability in small markets and limited service brands while Marriotts problems are aspirational properties in the highend segment on one side and market penetration problems in Europe on the other side - both of which Starwood could provide.

So sad they miss this opportunity!
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Old Nov 2, 2015, 6:33 am
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Mergers, takeovers and elimination of competition are never good for the consumer in the long run no matter how they spin it...
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Old Nov 2, 2015, 8:05 am
  #3  
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Originally Posted by Muerz
It is all over the news these days: Hyatt is in talks to take over Starwood. I wonder why Marriott did not step up their game and try to take over them.

They would be a perfect fit for one another since Starwoods biggest problem is their limited availability in small markets and limited service brands while Marriotts problems are aspirational properties in the highend segment on one side and market penetration problems in Europe on the other side - both of which Starwood could provide.

So sad they miss this opportunity!
Sorenson talked a few months ago about why they weren't buying Starwood.

Cheers.
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Old Nov 2, 2015, 9:12 am
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Originally Posted by SkiAdcock
Sorenson talked a few months ago about why they weren't buying Starwood.
Yep. Here's a link: http://skift.com/2015/04/30/marriott...od-type-deals/

I can see Marriott using acquisitions to strengthen its global presence. Delta and Protea made sense.

Marriott's launch of the Autograph Collection brand in 2010 was brilliant. I love the idea of hotels that are high-quality and affiliated with Marriott Rewards, but that are not typical chain hotels. I hope the Autograph Collection will add many dozens of properties in the U.S. and internationally over the next few years.

But I would be disappointed to see Sheraton by Marriott, Westin by Marriott, Aloft by Marriott, Four Points by Marriott, Element by Marriott, Le Méridien by Marriott, and so on. I would much rather see fierce competition between Marriott and Starwood (or between Marriott and a combined Hyatt-Starwood). As consumers, we benefit from competition.
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Old Nov 2, 2015, 9:15 am
  #5  
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Please don't.
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Old Nov 2, 2015, 1:41 pm
  #6  
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Originally Posted by Horace
Yep. Here's a link: http://skift.com/2015/04/30/marriott...od-type-deals/

I can see Marriott using acquisitions to strengthen its global presence. Delta and Protea made sense.

Marriott's launch of the Autograph Collection brand in 2010 was brilliant. I love the idea of hotels that are high-quality and affiliated with Marriott Rewards, but that are not typical chain hotels. I hope the Autograph Collection will add many dozens of properties in the U.S. and internationally over the next few years.

But I would be disappointed to see Sheraton by Marriott, Westin by Marriott, Aloft by Marriott, Four Points by Marriott, Element by Marriott, Le Méridien by Marriott, and so on. I would much rather see fierce competition between Marriott and Starwood (or between Marriott and a combined Hyatt-Starwood). As consumers, we benefit from competition.
Marriott is interested in buying (or creating) individual hotel brands, not hotel programs with zillions of brands. It's easier to absorb one or two hotel brands at a time, rather than a boatload of brands (which partly but not perfectly overlap what you already have) at once.

Btw, if Hyatt and Starwood do merge, there may be some divestitures (or hotels bailing) from the combined program, and then Marriott will have a chance to possibly get some individual hotels that used to be with Hyatt or Starwood.

Last edited by sdsearch; Nov 2, 2015 at 1:47 pm
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Old Nov 4, 2015, 3:02 pm
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Hmm...

Not sure I know how I feel about either acquisition. I am almost lifetime Plat in both programs and any acquisition will likely mess up one or both of my efforts to get lifetime plat in both programs.
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Old Nov 16, 2015, 10:08 am
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Originally Posted by Muerz
It is all over the news these days: Hyatt is in talks to take over Starwood. I wonder why Marriott did not step up their game and try to take over them.

They would be a perfect fit for one another since Starwoods biggest problem is their limited availability in small markets and limited service brands while Marriotts problems are aspirational properties in the highend segment on one side and market penetration problems in Europe on the other side - both of which Starwood could provide.

So sad they miss this opportunity!
Be careful what you wish for because you just might get it...
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Old Nov 16, 2015, 10:16 am
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Originally Posted by SkiAdcock
Sorenson talked a few months ago about why they weren't buying Starwood.
I guess it was a head fake.
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Old Nov 16, 2015, 10:55 am
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