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Starwood: "Marriott and Starwood stockholders approve merger"

Starwood: "Marriott and Starwood stockholders approve merger"

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Old Apr 4, 16, 12:18 am   -   Wikipost
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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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Old Nov 16, 15, 5:06 am
  #1  
JK
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Starwood: "Marriott and Starwood stockholders approve merger"

Just in case you missed it buried in the other post...

Seems we were all quite off the mark...

Press release here.
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Old Nov 16, 15, 5:14 am
  #2  
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Quite a shocker. Not such a bad news for Lifetime Platinum since Marriott also provide a Lifetime Status to its members.
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Old Nov 16, 15, 5:15 am
  #3  
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Ugh

Well that stinks. Have been using Marriott as my backup to Starwood (due to being Gold via UA) and I've been wholly underwhelmed. I find the Marriott program to be quite mediocre.
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Old Nov 16, 15, 5:22 am
  #4  
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Posted in the other thread, but this is a good and hopeful read. https://www.linkedin.com/pulse/marri...-arne-sorenson

It will be interesting to see what happens with all the brands. They seem proud to have 30 brands, but they can't possibly keep all those can they? Will FP go away given the massive number of courtyards, Fairfields, etc? And what about St. Regis given all the Ritz Carlton hotels owned/run by Marriott? I can't see Sheraton going away though.
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Old Nov 16, 15, 5:24 am
  #5  
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Originally Posted by UA-NYC View Post
Well that stinks. Have been using Marriott as my backup to Starwood (due to being Gold via UA) and I've been wholly underwhelmed. I find the Marriott program to be quite mediocre.
I too have Marriott Gold via UA, but I've been overall happy with the in-hotel elite treatment. Good upgrades, lounge access and free breakfast. What more do you want?
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Old Nov 16, 15, 5:24 am
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Argh. 1 year off getting Lifetime Plat. Unsettling news. Been dabbling with Marriott stays as well and was not fond of it. Starwood has been the best fit for me. Hyatt, Hilton and Marriott didn't work for me the way Starwood did.

Hyatt came close but has no footprint in my area of operations.

Any changes to SPG will probably be slow and gradual so I will try not to get all apocalyptic now.
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Old Nov 16, 15, 5:24 am
  #7  
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Marriott is nothing interesting but a dull and boring brand, so do their elite programme. Time to burn off all the Starpoints then.
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Old Nov 16, 15, 5:25 am
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Not too thrilled about this as it takes away some of the competitiveness of loyalty programs. I'm Marriott Gold and I find it roughly on par with Starwood Platinum. Here's hoping Starwood doesn't stoop to meet Marriott's program benefits...

Also worth noting the merger price is below HOT's current share price. Not much of a premium...wondering why Starwood was desperate to sell?
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Old Nov 16, 15, 5:27 am
  #9  
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Point conversion

This will be interesting...do we get jobbed and watch them try and convert Starpoints over 1:1?
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Old Nov 16, 15, 5:29 am
  #10  
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Originally Posted by UA-NYC View Post
This will be interesting...do we get jobbed and watch them try and convert Starpoints over 1:1?


Well SPG points convert to BA at 1:1 and marriott points convert to BA at 5:1 so I would hope they would convert SPG to Marrriott at 1:5 - get it?
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Old Nov 16, 15, 5:29 am
  #11  
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Originally Posted by jli View Post
Marriott is nothing interesting but a dull and boring brand, so do their elite programme. Time to burn off all the Starpoints then.
I would argue that this deal makes Marriott a very interesting brand. Starwood hotels aren't all cookie cutter properties as you must know.

One more speculation. I'll bet that a bunch of the Starwood Luxury Collection hotels become JW's.

And the obvious negative financial speculation. Average room rates will increase a fair amount over the coming years.
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Old Nov 16, 15, 5:34 am
  #12  
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Originally Posted by benberg2013 View Post
Well SPG points convert to BA at 1:1 and marriott points convert to BA at 5:1 so I would hope they would convert SPG to Marrriott at 1:5 - get it?
That sounds fair, I guess we shall see

Originally Posted by stimpy View Post
I too have Marriott Gold via UA, but I've been overall happy with the in-hotel elite treatment. Good upgrades, lounge access and free breakfast. What more do you want?
http://viewfromthewing.boardingarea....elite-members/

Good reminder why...#2 I think is now equal to SPG but the other issues remain.
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Old Nov 16, 15, 5:35 am
  #13  
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Time to kiss our AMEX cards goodbye given Marriott's relationship with Visa.
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Old Nov 16, 15, 5:35 am
  #14  
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I've created a wiki for the key information points for this deal, including a link to the Marriott shareholder news release.

This contains details of the joint conference call / webcast to take place at 9am EST today, if anyone wishes to listen in.
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Old Nov 16, 15, 5:37 am
  #15  
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Originally Posted by stimpy View Post
I would argue that this deal makes Marriott a very interesting brand. Starwood hotels aren't all cookie cutter properties as you must know.

One more speculation. I'll bet that a bunch of the Starwood Luxury Collection hotels become JW's.

And the obvious negative financial speculation. Average room rates will increase a fair amount over the coming years.
Well of course we still need to wait for more information regarding how the transition of elite programme goes. Living in Asia I'm more happy with SPG brands, so do their treatment to elite members (just my personal experience though).

But true that it expands the footprints and selections to SPG members a lot then.
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