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. 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
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
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
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
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
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
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. 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
Starwood: "Marriott and Starwood stockholders approve merger"
Apr 2, 2016, 10:03 am
#3346
Join Date: Dec 2009
Programs: BA Gold; AA Lfe Time PLT ; Marriott Titanium, LFT GLD
Posts: 1,276
What MAR could do to retain SPG Elites in MR
(1) Match LFT PLT and LFT GLD with SPG to LFT PLT and LFT GLD with MR, and give SPG elites % credit towards LFT PLT (crazy idea I know but it would make huge difference for me)
(2) Move to Hyatt style DSUs for suite upgrades or at least have an SNA program
(3) Go to guaranteed 4pm checkout for PLT
(4) Add stay credits for Elite qualification at 50% number of nights criteria
None of these will happen.... but the new MR program (in the words of the Donald) will be "Beautiful, the best!"
(2) Move to Hyatt style DSUs for suite upgrades or at least have an SNA program
(3) Go to guaranteed 4pm checkout for PLT
(4) Add stay credits for Elite qualification at 50% number of nights criteria
None of these will happen.... but the new MR program (in the words of the Donald) will be "Beautiful, the best!"
Apr 2, 2016, 10:03 am
#3347
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
Apologies. I was thinking about the other posters who were going on about the US/AA, CO/UA and DL/NW mergers. But again, look at the EU mergers. Those weren't so bad. In fact for many, those merged loyalty programs turned out to be better in some ways.
Apr 2, 2016, 10:04 am
#3348
Join Date: Dec 2007
Location: Body in Downtown YYZ, heart and mind elsewhere
Programs: UA 50K, refugee from AC E50K, Marriott Lifetime Plat
Posts: 5,133
SPG is a (pretty well-executed) loyalty program where miles are important - essential even - but not central to the program.
So when Mr. Sorenson says that our points are safe, one can only wonder if he's taken into account the fundamental difference between the programs and indeed, the fundamental differences in mindset between the people who choose to stay primarily at Marriotts vs those who choose to stay primarily at SPG. Has Mr. Sorenson opened his mind beyond the Marriott market? One wonders ...
Apr 2, 2016, 10:09 am
#3349
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,173
But it isn't the same thing. The points have been clearly made earlier in this thread, but if you haven't seen them you should go back and read. The short version is that the US Air industry is a controlled market with only a few players, but the hotel industry is global and uncontrolled with a great many players, not to mention a million or so independent hotels.
Why? Again - because they can. As others have said...where else are SPG elites going to run to? Sad but true.
Personally, I'm disappointed at 2, ambivalent at 2.5, and just slightly happy (realistically so) at 3. Anything more than 3 and I'd be genuinely shocked.
Apr 2, 2016, 10:18 am
#3350
Join Date: Mar 2014
Posts: 648
There're many ways (hotel redemption rates, airline transfer rates, earning for stays, spending via credit cards, etc.) to measure the relative value of points for each program, but most likely and logical way is to look at the hotel redemption rates. For fairness, future earning rates (via stays or credit card spend) can change, but points already earned should be worth the same upon conversion from SPG to MR. Below are the Marriott redemption rates for each category and their implied SPG category for different SPG to MR conversion ratio (X):
X = 3 X = 2.75 X = 2.5
MR Implied SPG Implied SPG Implied SPG
Category Points Category Category Category
1 7.5k 1 1 1
2 10k 1 to 2 1 to 2 2
3 15k 2 to 3 2 to 3 2 to 3
4 20k 3 3 3 to 4
5 25k 3 to 4 4 4
6 30k 4 4 5
7 35k 4 to 5 5 5
8 40k 5 5 5
9 45k 5 5 5 to 6
Implied SPG category is based on the equivalent SPG points under each conversion scenario and then use the SPG redemption chart to infer the SPG category.
Looking at the quality of hotels in each category, it seems to me the minimum conversion rate should be at least 2.5, and 3 is also reasonable.
X = 3 X = 2.75 X = 2.5
MR Implied SPG Implied SPG Implied SPG
Category Points Category Category Category
1 7.5k 1 1 1
2 10k 1 to 2 1 to 2 2
3 15k 2 to 3 2 to 3 2 to 3
4 20k 3 3 3 to 4
5 25k 3 to 4 4 4
6 30k 4 4 5
7 35k 4 to 5 5 5
8 40k 5 5 5
9 45k 5 5 5 to 6
Implied SPG category is based on the equivalent SPG points under each conversion scenario and then use the SPG redemption chart to infer the SPG category.
Looking at the quality of hotels in each category, it seems to me the minimum conversion rate should be at least 2.5, and 3 is also reasonable.
Last edited by tth6133; Apr 2, 2016 at 10:35 am Reason: attach table
Apr 2, 2016, 10:38 am
#3351
Join Date: Sep 2010
Location: YVR
Programs: AC*SE MM, Marriott Lifetime Titanium
Posts: 4,609
(1) Match LFT PLT and LFT GLD with SPG to LFT PLT and LFT GLD with MR, and give SPG elites % credit towards LFT PLT (crazy idea I know but it would make huge difference for me)
(2) Move to Hyatt style DSUs for suite upgrades or at least have an SNA program
(3) Go to guaranteed 4pm checkout for PLT
(4) Add stay credits for Elite qualification at 50% number of nights criteria
None of these will happen.... but the new MR program (in the words of the Donald) will be "Beautiful, the best!"
(2) Move to Hyatt style DSUs for suite upgrades or at least have an SNA program
(3) Go to guaranteed 4pm checkout for PLT
(4) Add stay credits for Elite qualification at 50% number of nights criteria
None of these will happen.... but the new MR program (in the words of the Donald) will be "Beautiful, the best!"
- MR's free breakfast does not extend to resorts.
- Your24 ?
Apr 2, 2016, 11:07 am
#3352
FlyerTalk Evangelist
Join Date: Dec 1999
Programs: Marriott Lifetime Titanium
Posts: 15,417
Apr 2, 2016, 11:11 am
#3353
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
So Marriott cannot have it both ways. If they gut SPG, they lose out on a ton of business. If they want to keep that business and report good combined earnings ongoing after the deal is done, then they HAVE to avoid upsetting SPG's best customers. From what I've seen, it is very clear that Marriott management understand this.
Apr 2, 2016, 11:15 am
#3354
FlyerTalk Evangelist
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
Further to this issue, you have to understand that revenue is king. Cost savings over synergies is a distant second to revenue. If your revenue is great, you won't get punished that bad over high costs. But if your revenue dips, then no one gives a hoot about how much you saved in synergies.
Apr 2, 2016, 11:16 am
#3355
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,173
You are still missing the point. Unlike the US airline market, the global hotel market is very open. SPG elites have a lot of places to run. I'm SPG Plat, HH Diamond, IHG Spire/RA, Accor Plat, etc. True I travel a lot more than others, but there is a wide variety of choices at both the high end (FHR. LHW, R&C) and low end (BW, IHG, etc).
So Marriott cannot have it both ways. If they gut SPG, they lose out on a ton of business. If they want to keep that business and report good combined earnings ongoing after the deal is done, then they HAVE to avoid upsetting SPG's best customers. From what I've seen, it is very clear that Marriott management understand this.
So Marriott cannot have it both ways. If they gut SPG, they lose out on a ton of business. If they want to keep that business and report good combined earnings ongoing after the deal is done, then they HAVE to avoid upsetting SPG's best customers. From what I've seen, it is very clear that Marriott management understand this.
I'm guessing the vast majority of business travelers aren't keeping top tier status in four chains, so you're likely an outlier.
I don't think the future MR (w/SPG integrated) will look that much different from the current MR. YMMV.
Apr 2, 2016, 11:27 am
#3356
Join Date: Dec 2009
Programs: BA Gold; AA Lfe Time PLT ; Marriott Titanium, LFT GLD
Posts: 1,276
They may have a better understanding of how MR operates than SPG members????
Apr 2, 2016, 11:32 am
#3357
Join Date: Dec 2009
Programs: BA Gold; AA Lfe Time PLT ; Marriott Titanium, LFT GLD
Posts: 1,276
Neither do I... and I do not think many (if any) FTer's postings on the MR board think that it will look much different. They are mostly looking forward to stays at properties currently in the SPG portfolio.
Apr 2, 2016, 11:41 am
#3358
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,949
Ie, the order you put them in matters. It's a conversion from SPG:Marriott, thus the SPG number should go on the left and the Marriott number on the right.
2:1 would mean you'd only get 1 Marriott point for every 2 SPG points. I've not heard anyone predicting that.
Apr 2, 2016, 11:53 am
#3359
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,173
Further to this issue, you have to understand that revenue is king. Cost savings over synergies is a distant second to revenue. If your revenue is great, you won't get punished that bad over high costs. But if your revenue dips, then no one gives a hoot about how much you saved in synergies.
Point is - they will think that, with newfound scale, and needing to equalize the two programs, and being *smart* with costs...they will downgrade the SPG experience as they integrate into MR. How far they go in doing so will remain to be seen.
Apr 2, 2016, 12:02 pm
#3360
Join Date: Dec 2009
Programs: BA Gold; AA Lfe Time PLT ; Marriott Titanium, LFT GLD
Posts: 1,276
Nowhere near that bad. They're actually predicting 1:2.
Ie, the order you put them in matters. It's a conversion from SPG:Marriott, thus the SPG number should go on the left and the Marriott number on the right.
2:1 would mean you'd only get 1 Marriott point for every 2 SPG points. I've not heard anyone predicting that.
Ie, the order you put them in matters. It's a conversion from SPG:Marriott, thus the SPG number should go on the left and the Marriott number on the right.
2:1 would mean you'd only get 1 Marriott point for every 2 SPG points. I've not heard anyone predicting that.