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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"

 
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Old Mar 22, 2016, 8:09 am
  #2626  
 
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Originally Posted by fwfdan
Quote:





Originally Posted by Wickersley


http://uk.mobile.reuters.com/article/businessNews/idUKKCN0WO1C3

Potentially bad news, if accurate, for Anbang..




I could not get to that article but is it maybe this one? http://www.reuters.com/article/us-st...-idUSKCN0WO1C4
That's the one
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Old Mar 22, 2016, 8:09 am
  #2627  
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Originally Posted by sapguy
Seems like those of us who have nights to move market share have already made our move to Hyatt, while keeping a close look at the development with Starwood.
I suspect the three of you have moved their market share many spots to the right of the decimal.

My closest Hyatt is still 25 miles away, though closer than my last 2 project sites. 3 SPG and 6 MR properties near here.
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Old Mar 22, 2016, 8:37 am
  #2628  
 
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Posts: 5,536
Originally Posted by stimpy
Yes of course it is about consolidation. But what you predict will take years, not months. And these companies still have to deliver on quarterly revenue and income while all the consolidation is going on or their valuation will be punished. Revenue is still king.
No, the only major hotel chains that offer loyalty programs that are arguably better than Marriott are SPG and Hyatt. SPG's on life support so the only remaining choice is Hyatt, which has been rejected by many on this board due to its 'small footprint'. Of course they now argue that SPG's small footprint is far superior to Marriott's larger footprint (I love the cognitive dissonance).

SPG's loyalty program is unlikely to be around after 2017. I don't know how the Pritzkers feel about selling their B shares, but once that happens HGP will follow SPG into the dustbin of discontinued hotel loyalty programs. At that point, the BEST major worldwide hotel loyalty programs will be Marriott and Hilton. Your (as in many on this board) worst nightmare - hotel loyalty programs that are viewed as mediocre.

So this is not a matter of years; it's a matter of months with the exception of Hyatt.

For your amusement, here's a list of the 10 largest hotel chains:
1) Wyndham
2) Choice
3) IHG
4) Hilton
5) Marriott
6) Best Western
7) Accor
8) Home Inns
9) Jin Jiang
10) SPG
The best loyalty programs on that list are Marriott and Hilton. Welcome to uniform worldwide mediocrity.


Originally Posted by DCF
SPG has a much bigger footprint than Marriott outside the USA. I'm already doing a lot of Shangri La stays - top end consumers outside the USA just won't tolerate cheap mediocrity.

Starwood get that. Hyatt get that. Shangri La get that.

Marriott and Hilton and Inter-Continental don't get that.
Gosh, you may want to check the numbers worldwide before making silly statements. Reference MAR and HOT 2015 10ks.
MAR page 6:
Europe 318
ME/Africa 152
Asia Pacific 192
Caribbean & Latin America 99
Total (Excluding timeshares): 761

HOT page 2:
Latin America: 97
Europe, ME, and Africa: 261
APAC: 317
Total (including timeshares): 675

You also prove my point with respect to loyalty programs that could be considered superior to Marriott/Hilton. Only SPG and Hyatt have decent sized footprints. As for Shangri La, there are exactly two properties in North America, both in Canada - and around 100 worldwide.

Shangri La, Peninsula, etc. Small high priced boutique chains that are not practical to the VAST majority of SPG members. The room price point alone eliminates 'better' hotel loyalty programs.

Originally Posted by Boghopper
Some of us reject the uniform mediocrity, others accept it.
Sure, and you reject airline mediocrity as you fly around in your G5 and stay at the Four Seasons/Mandarin Oriental/Peninsula/etc.
I get it. You're so wealthy that you don't have to mingle with us unwashed masses.

Last edited by iflyjetz; Mar 22, 2016 at 8:49 am
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Old Mar 22, 2016, 8:52 am
  #2629  
 
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Don't Know How We Feel About TPG But...

http://thepointsguy.com/2016/03/marr...eferred-guest/

I know this has been rumored before, Marriott seemed to confirm according to this article. Short term: separate programs. Long term: joined programs. Credit Cards: May keep both around.

mods: if this isn't helpful, feel free to remove
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Old Mar 22, 2016, 9:00 am
  #2630  
 
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Originally Posted by DCF
But that consolidation hasn't worked outside the USA. KLM/Air France and British Airways/Iberia have not consolidated like United/Continental or Delta/Northwest.
KL/AF are incorporated in, and pay taxes to, two different countries. US-style consolidation is not in the cards.
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Old Mar 22, 2016, 9:01 am
  #2631  
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Originally Posted by iflyjetz
For your amusement, here's a list of the 10 largest hotel chains:
1) Wyndham
2) Choice
3) IHG
4) Hilton
5) Marriott
6) Best Western
7) Accor
8) Home Inns
9) Jin Jiang
10) SPG
That is the list by number of hotels. Mostly cheap hotels. Now try the list by actual revenue.

1. IHG
2. Marriott
3. Hilton
4. Starwood
5. Accor
6. Wyndam
7. Hyatt
8. Shangri-La
9. Home Inns
10. Rezidor

http://www.statista.com/statistics/2...ups-worldwide/

I have top status in IHG, Hilton, Starwood, Accor, Hyatt, Centurion FHR, etc. and second tier Gold with Marriott. I actually stay in these hotels and use their programs and the top 5 ranking is...

1. Starwood and IHG both
3. Hilton
4. Accor
5. Marriott & Hyatt

Last edited by stimpy; Mar 22, 2016 at 9:07 am
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Old Mar 22, 2016, 9:06 am
  #2632  
 
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Originally Posted by supatight80
Nor do I ever want to..

But seriously, since your MR Plat, what is it that Marriott could possibly offer to Starwood guests if the merger happens?

Its properties? Its loyalty program? And speaking of quantity, is Marriott even competitive in Europe and Asia and most everywhere else besides America?

The way I see it, this merger only benefits the Marriott people as here they are staying at Fairfields and Courtyards and redeeming at Starwood Properties in Europe and wherever. But what do we Starwood folks get in return? An opportunity to mattress run only in USA?

In fact there's a thread in Marriott where people are looking at Starwood Properties in Europe where they can redeem their points. Do we have have such a thread at Starwood? No we don't and it is pretty obvious why...
That's just great - the nice properties will be overrun with people who are used to staying at Courtyards. Surely they won't appreciate what SW has to offer, and I imagine the behavior in the lounges will be terrible.
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Old Mar 22, 2016, 9:08 am
  #2633  
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Originally Posted by iflyjetz
No, the only major hotel chains that offer loyalty programs that are arguably better than Marriott are SPG and Hyatt. SPG's on life support so the only remaining choice is Hyatt, which has been rejected by many on this board due to its 'small footprint'. Of course they now argue that SPG's small footprint is far superior to Marriott's larger footprint (I love the cognitive dissonance).

SPG's loyalty program is unlikely to be around after 2017. I don't know how the Pritzkers feel about selling their B shares, but once that happens HGP will follow SPG into the dustbin of discontinued hotel loyalty programs. At that point, the BEST major worldwide hotel loyalty programs will be Marriott and Hilton. Your (as in many on this board) worst nightmare - hotel loyalty programs that are viewed as mediocre.

So this is not a matter of years; it's a matter of months with the exception of Hyatt.

For your amusement, here's a list of the 10 largest hotel chains:
1) Wyndham
2) Choice
3) IHG
4) Hilton
5) Marriott
6) Best Western
7) Accor
8) Home Inns
9) Jin Jiang
10) SPG
The best loyalty programs on that list are Marriott and Hilton. Welcome to uniform worldwide mediocrity.




Gosh, you may want to check the numbers worldwide before making silly statements. Reference MAR and HOT 2015 10ks.
MAR page 6:
Europe 318
ME/Africa 152
Asia Pacific 192
Caribbean & Latin America 99
Total (Excluding timeshares): 761

HOT page 2:
Latin America: 97
Europe, ME, and Africa: 261
APAC: 317
Total (including timeshares): 675

You also prove my point with respect to loyalty programs that could be considered superior to Marriott/Hilton. Only SPG and Hyatt have decent sized footprints. As for Shangri La, there are exactly two properties in North America, both in Canada - and around 100 worldwide.

Shangri La, Peninsula, etc. Small high priced boutique chains that are not practical to the VAST majority of SPG members. The room price point alone eliminates 'better' hotel loyalty programs.



Sure, and you reject airline mediocrity as you fly around in your G5 and stay at the Four Seasons/Mandarin Oriental/Peninsula/etc.
I get it. You're so wealthy that you don't have to mingle with us unwashed masses.
You are totally missing the point.

I could not care less that Marriott has infinite numbers of properties in third rate American towns that nobody other than an American would ever visit.

There are times when I will stay in $500 per night room in Sydney. There are zero occasions in my life when I will ever, ever, ever stay in a US mainland city with a population of less than 2 million. Forget Starwood, even Hyatt's US footprint is plenty big enough for non-Americans.

Australia is the size of the USA but Marriott's coverage is worse than Starwood, IHG and Hilton and the same as Hyatt and Shangri La.

But the loyalty program is worse than the other five. You would have to be intellectually impaired to be a MR loyalist in Australia.

Last edited by DCF; Mar 22, 2016 at 9:14 am
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Old Mar 22, 2016, 9:14 am
  #2634  
 
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Originally Posted by stimpy
That is the list by number of hotels. Mostly cheap hotels. Now try the list by actual revenue.

1. IHG
2. Marriott
3. Hilton
4. Starwood
5. Accor
6. Wyndam
7. Hyatt
8. Shangri-La
9. Home Inns
10. Rezidor

I have top status in IHG, Hilton, Starwood, Accor, Hyatt, Centurion FHR, etc. and second tier Gold with Marriott. I actually stay in these hotels and use their programs and the top 5 ranking is...

1. Starwood and IHG both
3. Hilton
4. Accor
5. Marriott & Hyatt
OK Stimpy, pick a hotel loyalty program other than Hyatt that will have a reasonable footprint once SPG gets folded into Marriott.

Your top 5 ranking is rather humorous.
IHG's loyalty program ONLY guarantees additional points for elite members. Nothing else. RA is a separate program but again suffers from the miniscule footprint of ICs worldwide.
Hilton and Accor better than Hyatt? I doubt you'll find more than a couple of people who agree with you on that ranking.
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Old Mar 22, 2016, 9:15 am
  #2635  
 
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Originally Posted by broadwayblue
This sums up my feelings perfectly.
my thoughts exactly - it will be like US Airways fliers coming onto AA planes - power ports, AV, FAs who don't wear zip up sweaters, oh my!
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Old Mar 22, 2016, 9:15 am
  #2636  
 
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Where's the eating popcorn emoji?
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Old Mar 22, 2016, 9:20 am
  #2637  
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Originally Posted by chicagoflyer1976
That's just great - the nice properties will be overrun with people who are used to staying at Courtyards. Surely they won't appreciate what SW has to offer, and I imagine the behavior in the lounges will be terrible.
Isn't your comment a bit of a disservice to SPG members? Not all SPG members stay at full-service properties. Are you suggesting that SPG members who stay at the lesser brands have terrible behavior in the lounges when they stay at SPG full-service properties that have a lounge?

I would hazard a guess that how one behaves in an exec lounge is more dependent upon one's own personality, sense of class, proprietary, bizness demeanor than it is to whether one stays at a 4Pts or a CY or SHS.

Cheers.
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Old Mar 22, 2016, 9:28 am
  #2638  
 
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Originally Posted by DCF
You are totally missing the point.

I could not care less that Marriott has infinite numbers of properties in third rate American towns that nobody other than an American would ever visit.

There are times when I will stay in $500 per night room in Sydney. There are zero occasions in my life when I will ever, ever, ever stay in a US mainland city with a population of less than 2 million. Forget Starwood, even Hyatt's US footprint is plenty big enough for non-Americans.

Australia is the size of the USA but Marriott's coverage is worse than Starwood, IHG and Hilton and the same as Hyatt and Shangri La.

But the loyalty program is worse than the other five. You would have to be intellectually impaired to be a MR loyalist in Australia.
I responded to what you wrote. If you had a point to make, you certainly didn't accomplish that in the post that I quoted.

As for Australia, why are you singling out a country with a population of less than 24 million? Wow, SPG has 6 hotels there vs 3 for Marriott.

If your point was that we should decide which hotel chain is best based on presence in Australia, great. I'd consider that metric to be intellectually impaired.

And to be clear, you were wrong that SPG has a larger footprint outside of North America than Marriott. They don't. Unless your entire world is Australia.
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Old Mar 22, 2016, 9:29 am
  #2639  
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Well if it's true the Chinese regulators won't approve a higher AnBang bid, then it looks like Marriott & SPG will be merging. Both sides will win on some items; both sides will lose on some items when the programs merge (presumably in 2018).

One thing that Marriott has over SPG is guaranteed exec lounge access/free brekkie for BOTH Golds & Plats. SPG guarantees exec lounge access to Plats, but Golds only get it if they're upgraded to the exec level. With Marriott it doesn't matter if a Gold is on the exec level or not; they still have lounge access & if there's no lounge still get free brekkie or points.

Marriott has 941 properties where Golds & Plats either have lounge access or, if there is no lounge or the lounge is closed, the option of either brekkie in the restaurant or 750 points/night in lieu of breakfast. Marriott has more full-service brands that have exec lounges than SPG does. Yes, a lot (not all) of US Marriott full-service lounges are closed on the weekend, but brekkie is offered in the restaurant for G/Ps or the points alternative. Int'ly the lounges ARE open. In Asia Courtyards usually have an exec lounge or free brekkie to G/P if there is no lounge, in addition to the full-service properties.

Where I see this being changed post-merger is Marriott dropping down to SPG's exec lounge policy which is Plats only, which is a significant downgrade for Marriott Gold members.

As a few people (on both sides) mentioned up thread, different elites value different things. That's pretty much it in a nutshell.

For some suites are the most important. I like & enjoy suite upgrades, but there are many times when it truly doesn't matter to me (ie, mtgs all day/biz dinners off-site so just a place to lay my head & a normal room is fine). For others it's 4pm check-out. While I've never needed one that late, up thread some SPG folk gave scenarios where the later check-out was important to them so I understand that (and do think that will go away). For some having exec lounge access/free brekkie (or points) is important. I tend to use the exec lounges a lot (although more in the evening). It's one reason I dropped Hilton as a chain, when they switched to their you only have access as Gold if you're upgraded (my stay patterns at the time were Plat w/ Marriott - I now have LTP - and Gold w/ Hilton). Others the exec lounge isn't quite as important because they're in late & out early. Yet others will prefer Marriott because they are in locations where there aren't SPG properties, or some will be happier w/ SPG because depending on their travel patterns SPG has more properties.

FTers (and elites in general) need to determine what's the most important to them in any loyalty program & base their decisions on those items.

This sudden suggestion that Marriott elites who stay at a variety of brands (and not just CYs) will suddenly run wild in the exec lounges, don't know how to dress, are rednecks & will behave like someone who has never traveled is silly & quite frankly doesn't really reflect well on the FTers posting such things.

Cheers.

Last edited by SkiAdcock; Mar 22, 2016 at 9:36 am
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Old Mar 22, 2016, 9:44 am
  #2640  
 
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Posts: 5,536
Originally Posted by Troopers
Where's the eating popcorn emoji?
I consider this to be positive - many have moved from the first stage, denial, to the second stage, anger.

Shortly, there should be a number of posts that are open letters to Anbang where total loyalty is pledged to SPG if they outbid Marriott. Some may even offer to sacrifice their firstborn. I recommend a couple bowls of popcorn for the bargaining stage.
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