Nov 16, 2015, 4:19 am
Last edit by: Schutzee
November 16, 2015
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
November 16, 2015
March 01, 2016
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. Starwood’s Board has not changed its recommendation in support of Starwood’s 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 it’s 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 Marriott’s stock-and-cash offer valued at $75.91 a share, or about $12.8 billion, based on March 24th’s 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 won’t easily back down as it seeks to build its hotel holdings. The Beijing-based company last year purchased Manhattan’s 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
China’s Anbang Drops Bid for Starwood Hotels
Operator of Sheraton, other hotels seen returning to Marriott’s previous takeover offer
http://www.wsj.com/articles/chinas-a...way-1459455942
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.
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
We’re excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the world’s 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, we’ll 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
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, we’ll 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
Originally Posted by Official Starwood Announcement to FT members
Dear members,
Starwood Hotels & Resorts and Marriott International to Merge, Creating the World’s Largest Hotel Company, Best Loyalty Program
Today we’re excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the world’s 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, you’ll 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 us—whether 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
Starwood Hotels & Resorts and Marriott International to Merge, Creating the World’s Largest Hotel Company, Best Loyalty Program
Today we’re excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the world’s 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, you’ll 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 us—whether 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
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
http://investor.shareholder.com/MAR/...leaseID=958056
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. Starwood’s Board has not changed its recommendation in support of Starwood’s 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 it’s 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 Marriott’s stock-and-cash offer valued at $75.91 a share, or about $12.8 billion, based on March 24th’s 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 won’t easily back down as it seeks to build its hotel holdings. The Beijing-based company last year purchased Manhattan’s 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
China’s Anbang Drops Bid for Starwood Hotels
Operator of Sheraton, other hotels seen returning to Marriott’s previous takeover offer
http://www.wsj.com/articles/chinas-a...way-1459455942
Starwood: "Marriott and Starwood stockholders approve merger"
Feb 4, 2016, 3:34 pm
#1771
Join Date: Dec 2004
Location: The City of Angels
Programs: UA Gold, Hyatt Globalist, Marriott LTP, Hilton Gold
Posts: 406
While I agree with your approach overall, I do think Marriott could make a case for "adding millions of dollars of additional liability" as a retention/marketing expense. If they felt that SPG loyalists would defect based on a perceived inequitable conversion rate, they could justify some million $s as retention (versus spending $s after the fact to get folks back). Given that, I have no clue as to the math (eg how many SPG points are in circulation x half a cent per point per your example above) to know whether this would be seen as "impossible" or "justifiable" from a stockholder/financial standpoint.
Feb 4, 2016, 7:04 pm
#1772
FlyerTalk Evangelist
Join Date: Jun 2004
Location: MSP
Programs: DL PM, MM, NR; HH Diamond, Bonvoy LT Gold, Hyatt Explorist, IHG Diamond, others
Posts: 12,159
Feb 4, 2016, 11:59 pm
#1773
Join Date: Jun 2008
Location: SFO
Programs: AA LTP 2MM, Marriott/SPG Rabid Plat w/Ambassador, HHonors Gold
Posts: 696
I think this is extremely unlikely. I just don't see a corporation purchasing liability at a fixed cost only to grossly inflate its value as a retention expense for Starwood loyalists. Instead, I think it's more likely Marriott will play with how the liability can be removed. When Starpoints are converted to Marriott Rewards at a 1:2 ratio, if redemption amounts for current Starwood properties are then only doubled (or less), Marriott might be able to sell that as a net wash. Regardless, this conversion ratio situation sort of paints Marriott into a corner; it will be very interesting how they handle it.
However, it also seems unlikely that some of the nice SPG Cat 5 & 6 properties would be redeemable for "merely" double the cost in MR points. Some of those properties are more akin to Ritz Carlton-type redemption levels. If MR sets SPG property redemption at more than double the cost in MR points, they could potentially make an argument for having a higher conversion ratio without higher liability.
In addition, we don't know exactly how they calculate the magic formula for liability from points, since we don't know all of the values used. It's highly unlikely that Starwood and Marriott have historically calculated these liabilities the same way. Adopting one or the other method might further increase or decrease the total liability. Or perhaps they could argue for using a hybrid method and recalculate the liability based on that, as I'm sure, for example, expected redemption rates between customer bases are not exactly the same.
Feb 5, 2016, 1:06 am
#1774
Join Date: Dec 2007
Location: LUX
Programs: LH SEN, BA Silver, HH SILVER, Bonvoy PLAT, A/club PLAT, Hyatt Diamond
Posts: 838
Do these people really care about loyal customers ?
Have you seen how Elite customers at top airlines have seen their benefits reduced year after year ?
The trend in the Hotel industry is the same as the one in the airline industry 5 years ago
Feb 5, 2016, 4:29 am
#1775
FlyerTalk Evangelist
Join Date: Aug 2007
Location: PARIS (France)
Programs: AF/KLM Club 2000 | InterContinental Diamond RA |AMEX Plat | Visa Infinite |Hertz President's Circle
Posts: 10,974
But they tend to make sure that their programs - which cost some money - create real loyalty (i.e. Anytime a decision should be taken, it is made for the brand rather than a competing one).
Market (tickets and nights are booked through up to 70% with non airline/non hotel/owned internet sites, business travels are managed more and more at corporate level with less and less choice made by individual customers) and customers are changing (Gen Y looks for other form of rewards).
Feb 5, 2016, 5:44 am
#1776
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,172
Disagree - if anything, it's gone the opposite direction w/SPG, with the added benefits of the 50/75/100 night tiers, allowing multiple rooms booked to count for status, etc.
Feb 5, 2016, 6:01 am
#1777
Join Date: Feb 2005
Location: PHL
Programs: AA EXP MM, HHonors Lifetime Diamond, Marriott Lifetime Ti, UA Silver
Posts: 5,038
Instead, I think it's more likely Marriott will play with how the liability can be removed. When Starpoints are converted to Marriott Rewards at a 1:2 ratio, if redemption amounts for current Starwood properties are then only doubled (or less), Marriott might be able to sell that as a net wash. Regardless, this conversion ratio situation sort of paints Marriott into a corner; it will be very interesting how they handle it.
However, it also seems unlikely that some of the nice SPG Cat 5 & 6 properties would be redeemable for "merely" double the cost in MR points. Some of those properties are more akin to Ritz Carlton-type redemption levels. If MR sets SPG property redemption at more than double the cost in MR points, they could potentially make an argument for having a higher conversion ratio without higher liability.
Feb 5, 2016, 6:12 am
#1778
Suspended
Join Date: Dec 2014
Posts: 8,460
Maybe Marriott converts SPG members at a 2:1 ratio and then jacks the number of MR points needed to redeem top SPG properties at a 3:1.
Feb 5, 2016, 10:30 am
#1779
Join Date: Oct 2002
Location: LAS
Programs: PA FT, TW Gold, NW/CO PE, VK Eagleflyer
Posts: 7,173
Comments of particular interest:
HM: When the acquisition was announced, SPG members cried foul. Allay their fears.
TM: We heard them loud and clear. The blogosphere lit up with concerns. What has made Starwood so valuable is its brands and loyalty program. We are confident that Marriott would approach it with a due-no-harm approach. We do not want to alienate our most valuable members, who drive about 50 percent of occupancy...Marriott needs to learn about the special sauce.
HM: When the acquisition was announced, SPG members cried foul. Allay their fears.
TM: We heard them loud and clear. The blogosphere lit up with concerns. What has made Starwood so valuable is its brands and loyalty program. We are confident that Marriott would approach it with a due-no-harm approach. We do not want to alienate our most valuable members, who drive about 50 percent of occupancy...Marriott needs to learn about the special sauce.
Should we fear the arrival of StarPesos?
Last edited by Sabai; Feb 5, 2016 at 10:36 am
Feb 5, 2016, 2:14 pm
#1780
FlyerTalk Evangelist
Join Date: Jun 2004
Location: MSP
Programs: DL PM, MM, NR; HH Diamond, Bonvoy LT Gold, Hyatt Explorist, IHG Diamond, others
Posts: 12,159
In addition, we don't know exactly how they calculate the magic formula for liability from points, since we don't know all of the values used. It's highly unlikely that Starwood and Marriott have historically calculated these liabilities the same way. Adopting one or the other method might further increase or decrease the total liability. Or perhaps they could argue for using a hybrid method and recalculate the liability based on that, as I'm sure, for example, expected redemption rates between customer bases are not exactly the same.
It gets weird only when the breakage factors are very different, and we can't know that. If the multiplier for SPG hotel redemption prices is the same as that for held points, that would be fair; making it too low means that people with current Marriott points get a benefit, so that will likely keep the factor in a reasonable range.
Feb 5, 2016, 2:25 pm
#1781
FlyerTalk Evangelist
Join Date: Jun 2004
Location: MSP
Programs: DL PM, MM, NR; HH Diamond, Bonvoy LT Gold, Hyatt Explorist, IHG Diamond, others
Posts: 12,159
Feb 5, 2016, 3:13 pm
#1782
Join Date: Dec 2004
Posts: 7,907
The liability is the number of points outstanding times a factor (the value of the points, including breakage). (The value is unknown, and probably reflects the cost to the company of paying the hotels for the stays rather than the nominal price avoided by the customer.)
It gets weird only when the breakage factors are very different, and we can't know that. If the multiplier for SPG hotel redemption prices is the same as that for held points, that would be fair; making it too low means that people with current Marriott points get a benefit, so that will likely keep the factor in a reasonable range.
It gets weird only when the breakage factors are very different, and we can't know that. If the multiplier for SPG hotel redemption prices is the same as that for held points, that would be fair; making it too low means that people with current Marriott points get a benefit, so that will likely keep the factor in a reasonable range.
I will be surprised if Marriott gives us 5x on Starpoints in the merge.
Feb 5, 2016, 3:16 pm
#1783
Join Date: Jan 2011
Location: HKG • Ex SFO, NYC
Programs: UA 1K, AA EXP; Marriott Amb; Hyatt Globalist; Shangri-la Diamond; IHG SpireAmb; Hilton D; Accor G
Posts: 3,319
Is there any chance they won't merge the programs? They didn't merge Ritz. Maybe Starwood will remain a separate chain of brands for "millennials" with its own program.
Feb 5, 2016, 3:18 pm
#1784
Join Date: Dec 2004
Posts: 7,907
Marriott CEO said they would on CNBC or some program I saw once. I guess anything could happen though.
Feb 5, 2016, 3:30 pm
#1785
Suspended
Join Date: Dec 2014
Posts: 8,460
Maybe, maybe not. This goes back to the conversation about where will people go.
What if Marriott converts points at 2:1, jacks SPG properties to 3x points needed, but honors SPG status with Marriott (Plat to Plat, Gold to Gold). Then what? Nobody is going to leave that.
What if Marriott converts points at 2:1, jacks SPG properties to 3x points needed, but honors SPG status with Marriott (Plat to Plat, Gold to Gold). Then what? Nobody is going to leave that.