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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
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
November 16, 2015
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
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. 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
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Starwood: "Marriott and Starwood stockholders approve merger"

 
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Old Nov 25, 2015, 3:37 pm
  #1141  
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Nov 25 5:36PM eastern - i'll make a prediction :

"Marriott Preferred Guest"
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Old Nov 25, 2015, 3:46 pm
  #1142  
 
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Originally Posted by sethb
There is precedent (in other industries) for the acquired company's name to be the survivor. E.g. Chemical Bank bought Chase Bank and renamed itself Chase.
Highly unlikely that'll happen here. "Starwood" has very little brand equity with the general public compared to "Marriott." It's Starwood's hotel brands (like Westin, Sheraton, W, etc.), not the company name, that are well known.

It's more likely survivors would surface at the hotel, not corporate, brand level -- again, only if some hotel brands are sunset or combined.

Though I'd agree, if asked, that Chase is a far better bank moniker than Chemical. Also better known among consumers at the time, most likely.
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Old Nov 25, 2015, 3:51 pm
  #1143  
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Originally Posted by Horace
I could see Moxy disappearing. Moxy could be folded into Aloft. There's only one Moxy so far (in Milan). I haven't seen it, but I've stayed at two Aloft properties this year. Moxy appears to be similar to Aloft in target market, identity, and execution.

Marriott and Starwood are both in the business of selling franchises
moxy may not be joint venture, but its franchise with ikea owning initial hotels
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Old Nov 25, 2015, 4:17 pm
  #1144  
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Originally Posted by jeedk
They were omitted correctly. The criteria I was listing was only "luxury" and "upper upscale", as officially defined by STR. Both Indigo and Staybridge are 1 level below that.

Also I've noticed the most frequently touted benefits of SPG are (1) Platinum specific, and (2) not related to earn-and-burn.

Using the official ThePointsGuy valuation of 2.5cpp for SPG and 0.7cpp for MAR, I have calculated the following "rebate ratio" :
  • Marriott Platinum : 10.5% rebate for rooms and up to 13.4% rebate if transferred to UA miles
  • SPG Plat 50 : Same 7.5% rebate for room & airline, inclusive of 25% xfer bonus
  • SPG Plat 75 : With 4 pt/$ earn, the rebate is upped to 10.0%

My calculations are already far more favorable than what IdeaWorks has reported for SPG. When viewed in this lens, the merger isn't all about "cut cut cut"
The "rebate" ratio is irrelevant if you no longer get the room type you really want from a redemption. If the best you can reasonably expect is a club room then you need to factor in the cost delta to get the suite you really want. This is the hidden value within SPG as otherwise I agree the earn to burn ratio is quite poor at Starwood and some way short of IHG and even Hilton.

I am sorry but there is nothing upscale about ES in my experience nor a great many Hiltons and typical US Sheratons too. Whatever the rating yardstick it doesn't substitute for practical experience. I would almost always rather a SS over ES and would take Indigo in preference to quite a few W's and Hiltons. Again though it isn't just about number of brands it is about total hotels within footprint and Starwood has always done badly here.

You seem to try to stack logic in order to support your desired conclusion not draw an objective conclusion from objective data.
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Old Nov 25, 2015, 6:04 pm
  #1145  
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Originally Posted by Seattlenerd
Highly unlikely that'll happen here. "Starwood" has very little brand equity with the general public compared to "Marriott." It's Starwood's hotel brands (like Westin, Sheraton, W, etc.), not the company name, that are well known.

It's more likely survivors would surface at the hotel, not corporate, brand level -- again, only if some hotel brands are sunset or combined.

Though I'd agree, if asked, that Chase is a far better bank moniker than Chemical. Also better known among consumers at the time, most likely.
I was pointing out that the selection of name wasn't based on who bought whom, but on which name was worth more.

In the US, "Chase" and "Chemical" were about equal. In the rest of the world, "Chase" was a much better brand, so that name survived.

In this case, where two brands are merged, the surviving name might be from either side. The corporate name "Marriott" is a more valuable name than "Starwood".
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Old Nov 25, 2015, 7:03 pm
  #1146  
 
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Originally Posted by sethb
I was pointing out that the selection of name wasn't based on who bought whom, but on which name was worth more.

In the US, "Chase" and "Chemical" were about equal. In the rest of the world, "Chase" was a much better brand, so that name survived.

In this case, where two brands are merged, the surviving name might be from either side. The corporate name "Marriott" is a more valuable name than "Starwood".
I agree on all points. My point was that in this case, it was unlikely the "Starwood" name would survive as part of the corporate name. It has very little equity compared to Marriott (though a lot with this forum).
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Old Nov 25, 2015, 8:29 pm
  #1147  
 
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What aspect of Starwood Hotels you hope Marriott will continue?

Hopefully, when Starwood is absorbed by Marriott some aspects will continue. For me the beds, linens and towels at many Starwoods are superior to Marriott's.
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Old Nov 25, 2015, 10:17 pm
  #1148  
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Originally Posted by Horace
On the Starwood side, I expect to see Tribute Portfolio disappear. The few hotels will be folded into Marriott's Autograph Collection, which has far more hotels and is better established. Both brands are for 4-star properties with their own unique identities.

On the Marriott side, I could see Moxy disappearing. Moxy could be folded into Aloft. There's only one Moxy so far (in Milan). I haven't seen it, but I've stayed at two Aloft properties this year. Moxy appears to be similar to Aloft in target market, identity, and execution.

Beyond those two pairs of brands, I don't see any other Starwood or Marriott brands going away.

I could see some 5-star Autograph Collection properties moving to Luxury Collection. Marriott does not currently have a 5-star "collection" brand.

Although there are similarities between Le Méridien and Renaissance, you could also add Westin to that list. Actually, you could add all the full-service Starwood and Marriott brands to that list. There are very nice upper-upscale Marriott and Sheraton hotels, as well as ones that desperately need renovation.

Marriott and Starwood are both in the business of selling franchises, and that will still be the case when they're one company.

Think of a downtown like Indianapolis, where there's a Westin, Sheraton, Le Méridien, Marriott, and JW Marriott. There's no reason to retire one or more full-service brands and force one or more hotels to adopt a different brand. All it would do is cause confusion. (Marriott also has a number of select-service and extended stay properties in downtown Indianapolis.)

In downtown Indianapolis, the combined company will still be in a position to sell a Renaissance franchise and a Delta franchise, without duplicating full-service brands.

Ideally, each brand will have a distinct personality in the long run.



Yep!
Thanks for the valuable insight, Horace. I completely agree with the above, except I worry that Moxy might not be easy to initially shake off since, if I recall correctly, IKEA is involved in that venture. There are also a few of them under construction; I saw one nearing completion in Munich and saw plans for one in Edinburgh, so expansion is clearly happening but is in no way close to Aloft's current/future portfolio. Aloft also seems to be the better product and has much more international presence given its head start to Moxy, but we'll see - I don't think any brands are disappearing within the next five years save the Tribute Portfolio.

I read somewhere that the Luxury Collection might be at risk of being folded into the Autograph Collection since it has a mix of four- and five-star properties but Marriott might do well to keep both brands and keep LC as five-star and AC as four-star. Le Méridien, Renaissance and AC by Marriott [to me, at least] all seem to work within the same realm - LM is art- and destination-oriented, Renaissance has been trying to be the stylish/artsy Marriott brand and AC brings a little European flair to the Marriott plate but of all those brands, I honestly see LM as the strongest and most established one. Maybe I'm biased but like you said, Marriott might just be working on a strategy to keep all these brands in place and market each one with its own identity and where it could sell best [i.e. opening an LM in a major Middle Eastern city would be preferable to say, an AC by Marriott due to the better reputation/presence of the LM name]. Westin has been compared to JW Marriott on several occasions as it is - I say this delicately - a premium yet distinct variation of what Sheratons offer the same way that JW Marriott offers a premium version of what Marriott has.

I'm remaining open to what the future holds and, like many of you, truly hope that the best of Starwood is preserved.

khabah
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Old Nov 25, 2015, 10:35 pm
  #1149  
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marriott wants to rapidly grow the smaller starwood brands, marriott CEO specifically mentioned at least aloft if not element as well

starwood has the 'lifestyle' (and brand) element that others came to much later
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Old Nov 25, 2015, 11:31 pm
  #1150  
 
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Smile Is it time to give up on these hotel loyalty programs?

This Marriott buying Starwood is giving me one big headache. Wish Holland America Cruise Line would give out some equivalent status match for Starwood Platinums that would induce us to dramatically decrease hotel nights and replace with cruise nights for those of us no longer working!!!
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Old Nov 26, 2015, 1:36 am
  #1151  
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Anyone think there is a white knight?

We are two weeks in after merger annoucements.

I am still optimistic about a possible white knight coming for a better offer acquire Starwood.

Why can't Hyatt make a stronger solid offer or any of the other International hotel chains make an more powerful bid as a defensive move? There is also sovereign wealth funds or private equity that can take the chain private.

I think in late spring is when things really solidify.
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Old Nov 26, 2015, 3:18 am
  #1152  
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Originally Posted by yeunganson
We are two weeks in after merger annoucements.

I am still optimistic about a possible white knight coming for a better offer acquire Starwood.

Why can't Hyatt make a stronger solid offer or any of the other International hotel chains make an more powerful bid as a defensive move? There is also sovereign wealth funds or private equity that can take the chain private.

I think in late spring is when things really solidify.
Be careful what you wish for, look at what PE did for HH.
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Old Nov 26, 2015, 3:37 am
  #1153  
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Originally Posted by Land-of-Miles
The "rebate" ratio is irrelevant if you no longer get the room type you really want from a redemption. If the best you can reasonably expect is a club room then you need to factor in the cost delta to get the suite you really want. This is the hidden value within SPG as otherwise I agree the earn to burn ratio is quite poor at Starwood and some way short of IHG and even Hilton.

I am sorry but there is nothing upscale about ES in my experience nor a great many Hiltons and typical US Sheratons too. Whatever the rating yardstick it doesn't substitute for practical experience. I would almost always rather a SS over ES and would take Indigo in preference to quite a few W's and Hiltons. Again though it isn't just about number of brands it is about total hotels within footprint and Starwood has always done badly here.

You seem to try to stack logic in order to support your desired conclusion not draw an objective conclusion from objective data.
So you have personal preferences of hotel brands while I use official STR ratings, and I'm the one not using objective data and conclusion ??

The debate is futile if we're all going by personal choices of individual hotels and brands.

Lastly your p
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Old Nov 26, 2015, 3:39 am
  #1154  
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Originally Posted by Land-of-Miles
The "rebate" ratio is irrelevant if you no longer get the room type you really want from a redemption. If the best you can reasonably expect is a club room then you need to factor in the cost delta to get the suite you really want. This is the hidden value within SPG as otherwise I agree the earn to burn ratio is quite poor at Starwood and some way short of IHG and even Hilton.

I am sorry but there is nothing upscale about ES in my experience nor a great many Hiltons and typical US Sheratons too. Whatever the rating yardstick it doesn't substitute for practical experience. I would almost always rather a SS over ES and would take Indigo in preference to quite a few W's and Hiltons. Again though it isn't just about number of brands it is about total hotels within footprint and Starwood has always done badly here.

You seem to try to stack logic in order to support your desired conclusion not draw an objective conclusion from objective data.
So you have personal preferences of hotel brands while I use official STR ratings, and I'm the one not using objective data and conclusion ??

The debate is futile if we're all going by personal choices of individual hotels and brands.

Lastly your point about suite awards only applies to top tier elites if I'm not mistaken, making it moot for many travelers including myself.
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Old Nov 26, 2015, 3:52 am
  #1155  
 
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Originally Posted by Land-of-Miles
Be careful what you wish for, look at what PE did for HH.
Exactly! Look what United did to Continental compared to what many thought would have been a better fit----Delta and Continental. For a brief time, Continental Club members had access to Delta Clubs, and we all thought that was a precursor to a partnership or merger.

While it's good to have hope, the best strategy is to be pro-active and prepared to diversify into other programs.
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