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Starwood: "Marriott and Starwood stockholders approve merger"

Old Nov 16, 2015, 4:19 am
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November 16, 2015
BETHESDA, Md. and STAMFORD, Conn., Nov. 16, 2015 /PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will create the world's largest hotel company. 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. Combined, the companies operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The combined company's pro forma fee revenue for the 12 months ended September 30, 2015 totals over $2.7 billion.
Marriott Shareholder News Release :
http://investor.shareholder.com/mar/...leaseID=942791

Starwood Investor News Release :
https://s1.q4cdn.com/483583335/files...wood-FINAL.pdf

Marriott CEO Linkedin Post:
https://www.linkedin.com/pulse/marri...-arne-sorenson

November 16, 2015
Originally Posted by Official Starwood Announcement on the SPG website
Were excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the worlds largest hotel company. For our Starwood Preferred Guest (SPG) members, this will mean even more choices in even more places, giving you access to 1.1 million rooms across 5,500 hotels and resorts in more than 100 countries.

We will work to bring you the very best of SPG and Marriott Rewards, two of the most rewarding loyalty programs in our industry. Our members are at the core of everything we do, and that will not change.

This is the beginning of a long journey as we combine our two companies. For now, we remain separate, and there is no change to your SPG program status, your Starpoints or your existing reservations. You will continue to earn Starpoints and elite stay/night credit for your stays, as well as bonus Starpoints for any promotions in which you are participating. There is no change to how you manage your SPG account or book reservations.

Over the coming months, as we have more to share, well be sure to reach out to you by email, at spg.com and via twitter (@spg). In the meantime, we remain at your service wherever you need us whether in our hotels, at spg.com, on the SPG mobile app or via our Customer Contact Centers.

Thank you for sharing your travels with us.

Chris Holdren
Senior Vice President, Starwood Preferred Guest
November 16, 2015
Originally Posted by Official Starwood Announcement to FT members
Dear members,

Starwood Hotels & Resorts and Marriott International to Merge, Creating the Worlds Largest Hotel Company, Best Loyalty Program

Today were excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the worlds largest hotel company. For our SPG members, this will mean even more choices in even more places, giving you access to 1.1 million rooms across 5,500 hotels in more than 100 countries.

As we look to bring together the very best of Starwood Preferred Guest and Marriott Rewards, we are confident that together we will create the most rewarding loyalty program in our industry. Our members are at the core of everything we do, and that will not change.

Today is the first day of a long journey as we combine our two companies. For now, we remain separate, and there is no change to your Starwood Preferred Guest (SPG) program status, your Starpoints or your existing reservations. You will continue to earn Starpoints and elite stay/night credit for your stays, and bonus Starpoints for any promotions in which are you are participating. There is no change to how you manage your SPG account or book reservations.

Over the coming months, as we have more to share, youll continue to be among the first to hear by e-mail, at spg.com and via twitter (@spg). In the meantime, we remain at your service wherever you need uswhether in our hotels, at spg.com, the SPG mobile app, or via our Customer Contact Centers.

[email protected]

Thyetus Lee | Social Media Specialist
Starwood Customer Contact Centre (AP) Pte Ltd
March 01, 2016
The U.S. Department of Justice and the U.S. Federal Trade Commission will not challenge the proposed merger between Marriott International and Starwood Hotels & Resorts. The waiting period for Marriott's filing with the FTC under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the merger's first regulatory hurdle, expired on Monday, meaning the deal is cleared to proceed. The Competition Bureau of Canada also will not challenge the transaction. According to Marriott, the companies are cooperating with competition authorities in other parts of the world to obtain approval of the deal. Marriott and Starwood will hold separate stockholder meetings on March 28 to vote on the merger.
http://investor.shareholder.com/MAR/...leaseID=958056
March 14, 2016
Announcement that a consortium including the Chinese company Anbang has made an unsolicited rival bid.
http://www.cnbc.com/2016/03/14/starw...6-a-share.html

March 18, 2016
Starwood determines that the Anbang bid is 'superior' and notifies Marriott of the intention to terminate the merger agreement.
Marriott have until March 28 to make a counter-bid that is as good as or better than Anbang.
Starwood is postponing its stockholder vote, which was scheduled for Monday, March 28th, to a new date to be determined after consultation with Marriott. Starwoods Board has not changed its recommendation in support of Starwoods merger with Marriott.
http://www.cnbc.com/2016/03/18/starw...e-in-cash.html

March 21, 2016
Starwood and Marriott sign a revised merger agreement after Marriott submit an increased bid which values Starwood stock at $85.36. This is now the 'superior' proposal.
Under the revised merger agreement Starwood is not allowed to engage in discussions with Anbang. However, Anbang may make another unsolicited offer, up until the time of the Starwood shareholder vote, which is April 8, 2016.

March 28, 2016
Starwood Hotels & Resorts Worldwide Inc. said it received a higher takeover offer from a group led by Anbang Insurance Group Co., putting the Chinese company back into battle with Marriott International Inc. for control of the hotel operator.
Starwood said its in negotiations with the Anbang group after receiving a nonbinding offer of $82.75 a share in cash, or about $14 billion, according to a statement Monday. That compares with Marriotts stock-and-cash offer valued at $75.91 a share, or about $12.8 billion, based on March 24ths closing price. Marriott, in its own statement Monday, reaffirmed its commitment to buy Starwood, saying its proposal offers stockholders greater long-term value.
Shares of Starwood rose 2.4 percent to $84.06 at 10:29 a.m. New York time. Marriott climbed 4 percent to $71.35.
The new offer from Anbang, which is working with J.C. Flowers & Co. and Primavera Capital, shows the insurer wont easily back down as it seeks to build its hotel holdings. The Beijing-based company last year purchased Manhattans landmark Waldorf Astoria for $1.95 billion, and is in a deal to acquire luxury-property owner Strategic Hotels & Resorts Inc. for about $6.5 billion. Gaining Starwood would add brands such as Sheraton, W and St. Regis, as well as about $4 billion worth of real estate.
Starwood said it received a non-binding bid of $81 a share on March 26 from the Anbang group, which increased its offer after subsequent discussions. Starwood is negotiating terms of a binding proposal and said it will carefully consider the outcome of its discussions with the consortium in order to determine the best course of action for shareholders.
http://www.bloomberg.com/news/articl...er-from-anbang

March 31, 2016

Chinas Anbang Drops Bid for Starwood Hotels
Operator of Sheraton, other hotels seen returning to Marriotts previous takeover offer

http://www.wsj.com/articles/chinas-a...way-1459455942
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Starwood: "Marriott and Starwood stockholders approve merger"

 
Old Mar 25, 2016, 1:18 pm
  #2941  
 
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Originally Posted by sapguy
I too will be exploring FHR as part of my new AMEX Platinum sign up.

To be clear: SPG, Hyatt, Hilton hotels booked through FHR will still give me all the benefits of my elite status with those chains, correct? Thanks
SPG yes. Can't speak for the others.
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Old Mar 25, 2016, 1:40 pm
  #2942  
 
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Originally Posted by spgplat21
I think it's important to note that SPG makes money off the loyalty program. So it would be about trying to make more money off of it, and not just cutting an expense.
SPG (Starwood Preferred Guest) is the loyalty program. Do you mean HOT makes money off the loyalty program (aka SPG)? SPG certainly encourages or incentivize consumers to stay at HOT allowing HOT to make more money, but SPG does not directly generate revenue (except for the sale of SPG points). Side note, IC Ambassador program does generate revenue with its annual fee.

SPG currently holds the pole position (by a wide margin IMO) in hotel loyalty program. So, I'm not sure if increasing benefits, thus driving more consumers to HOT, outweigh the costs.
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Old Mar 25, 2016, 2:41 pm
  #2943  
 
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Originally Posted by fliesdelta
But, I'm wondering if the new chain will be called S&M. It'd be a great name for a hotel business, I think.
Whips in lieu of bottled water?
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Old Mar 25, 2016, 3:46 pm
  #2944  
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Originally Posted by Hankerin
Whips in lieu of bottled water?
Isn't that the status quo at Ws?
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Old Mar 25, 2016, 4:23 pm
  #2945  
 
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Originally Posted by Troopers

Quote:
However, a lot of those costs are paid by the hotels anyway, not corporate.

False.
According to Starwood v. Parker case, hotels have to purchase Starpoints from Preferred Guest, Inc. ("PGI sells Starpoints to SPG participating hotels and partners,") So my understanding is that the Starpoints that hotels give to the customers are not free, and in fact they have to purchase it from PGI which I assume a part of Starwood.

So the costs are indeed paid by the hotels at least partly. Of course hotels do get reimbursement when SPG members stay with points, but they get pretty low amount of money, unless the Occupancy Rate is >95% when the reimbursement is at the ADR.
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Old Mar 25, 2016, 4:29 pm
  #2946  
 
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Originally Posted by MSPeconomist
Isn't that the status quo at Ws?
http://loyaltylobby.com/2015/10/02/f...jing-chang-an/

Apparently yes.
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Old Mar 25, 2016, 4:59 pm
  #2947  
 
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Originally Posted by Hankerin
Whips in lieu of bottled water?
no. being taken over by Marriott and subjected the the Marriott Rewards program will be enough torture to warrant the S&M moniker.
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Old Mar 26, 2016, 3:47 am
  #2948  
 
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Enough of the competition-killers

We need more choice, not less. I don't want Marriott's greedy little hands over a brand/elite program that I have loved for many years. As far as I'm concerned, SPG is the best in the business for consumers, like me. I am truly hoping Anbang comes out on top Marriott would just snuff out the beautiful flame which is Starwood.

Things were a LOT better when Northwest and Continental were still alive.
Bigger is not better in the travel space competition is what keeps things
vibrant and rewarding for everyone. Refuse to fly Delta or United - lousy products. Silly to let the same thing happen to Starwood.
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Old Mar 26, 2016, 8:07 am
  #2949  
 
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Originally Posted by choco
We need more choice, not less. I don't want Marriott's greedy little hands over a brand/elite program that I have loved for many years. As far as I'm concerned, SPG is the best in the business for consumers, like me. I am truly hoping Anbang comes out on top … Marriott would just snuff out the beautiful flame which is Starwood.

Things were a LOT better when Northwest and Continental were still alive.
Bigger is not better in the travel space … competition is what keeps things
vibrant and rewarding for everyone. Refuse to fly Delta or United - lousy products. Silly to let the same thing happen to Starwood.
Well thats the way things are. The times are over when Conrad Hilton and JW Marriott as founders and owners managed their own companies with a long-term vision, setting standards (incl. luxury) for the hotel industry which are valid till today, chosing personally new properties, looking under the beds to check cleanliness, attracting the celebrities of their times to stay at their hotels.

Nowadays we have investors. Companies must make sufficient money to satisfy their investors. Starwood showed weakness in this respect. Yes they did a good job serving their guests and SPG members, I have been to many Starwood hotels as SPG Gold in the past, fine hotels, fine program, no doubt.

Marriott is a good choice for a merger IMHO. They know how to run hotels (incl. luxury) and have a reliable loyalty program and it is their core business (I have been Marriott Gold as well). And the merger is able to attract new or lost customers like me. The joint portfolio from midscale to luxury and the coverage all over is so attractive that you nearly cant refuse that option as a frequent traveller.

Last edited by submonte; Mar 26, 2016 at 9:12 am Reason: "and" instead of "because"
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Old Mar 26, 2016, 9:10 am
  #2950  
 
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Possibly on-topic: Mergers and acquisitions as viewed by Funny or Die:

http://www.funnyordie.com/videos/c38...e-52c5d4a839b0

(Not for the sensitive)
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Old Mar 26, 2016, 9:15 am
  #2951  
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Originally Posted by Sabai
Possibly on-topic: Mergers and acquisitions as viewed by Funny or Die:

http://www.funnyordie.com/videos/c38...e-52c5d4a839b0

(Not for the sensitive)
Cleaning off the tea from my laptop screen that I spit out while LOL

Cheers.
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Old Mar 26, 2016, 1:35 pm
  #2952  
 
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https://skift.com/2016/03/25/the-ins..._hsmi=27723692
The Inside Story of Anbang’s Long Pursuit to Acquire Starwood

This Is Definitely Not the End

If anything, the new filing from Starwood-Marriott shows there’s still a chance Anbang could potentially come back with a better offer and take Starwood.

Why is that? For one, Anbang originally offered Starwood about $14.65 billion in cash back in May and in November, it was willing to pay anywhere from $13.8 billion to $14.3 billion in cash for Starwood. Shortly after news broke on March 21 that Starwood had accepted Marriott’s new offer, analysts speculated that Anbang could come back to Starwood offering as much as $85 per share and, as far back as November 2015, Anbang was willing to offer up to $86. In short, it has the cold hard cash to win in the end, if it so chooses.

Secondly, the fact that Anbang was willing to pay up to half of the original $400 million breakup fee demonstrates its further commitment to acquiring Starwood. That Starwood negotiated with Marriott to bring the new breakup fee down from a whopping $600 million to $450 million, plus $18 million in expenses, could be interpreted as Starwood leaving the door open for Anbang to come back with a bigger, better offer, too. Marriott, seeing the looming threat of another bid from Anbang, probably hoped it could keep the new breakup fee at $600 million, but it was willing to settle for $468 million instead.
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Old Mar 26, 2016, 2:24 pm
  #2953  
 
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^better not be the end. This is dragging at this point...hate waiting until April 8.
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Old Mar 26, 2016, 9:56 pm
  #2954  
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Okay, now I am really confused.

So last year Hyatt outbid Marriott, but Starwood chose Marriott anyway? How can that be lawful execution of duties?

And now, again, the Marriott revised offer is less than the first Anbang offer, but has been recommended again?
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Old Mar 26, 2016, 10:44 pm
  #2955  
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Originally Posted by DCF
So last year Hyatt outbid Marriott, but Starwood chose Marriott anyway? How can that be lawful execution of duties?
I don't recall Hyatt making a realistic offer.

Originally Posted by DCF
And now, again, the Marriott revised offer is less than the first Anbang offer, but has been recommended again?
It was considered a better offer at the time it was made and recommended.
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