8 Replies Latest reply: Mar 22, 2016 10:51 AM by jerryl RSS

Marriott still chasing Starwood

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So now Marriott is after Starwood again with an increased offer of 13.6B...

 

http://money.cnn.com/2016/03/21/news/companies/starwood-marriott-deal/index.html?iid=hp-stack-dom

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  • Re: Marriott still chasing Starwood
    psudad Alumni Steward Gold 3 Reviews
    Currently Being Moderated

    Excellent!

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  • Re: Marriott still chasing Starwood
    intltrojan Platinum
    Currently Being Moderated

    I hope Marriott wins (at a fair price, that is).

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  • Re: Marriott still chasing Starwood
    phctourist Platinum 20 Reviews
    Currently Being Moderated

    As a frequent guest, I would like the added places to stay.  As a shareholder, I would not want Marriott to pay too high a price.

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  • Re: Marriott still chasing Starwood
    lindseyh Community Manager Marriott Associate Member
    Currently Being Moderated

    Thanks for sharing this link, dansplan. We'll see what happens!

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  • Re: Marriott still chasing Starwood
    jerryl Platinum 2 Reviews
    Currently Being Moderated

    I doubt Marriott will go up again but hopefully they raised the breakup fee

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    • Re: Marriott still chasing Starwood
      bejacob Platinum 38 Reviews
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      Breakup fee went up by $50M to $450M. Chances are good this time the deal goes through. I don't think Marriott will raise again.

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      • Re: Marriott still chasing Starwood
        jerryl Platinum 2 Reviews
        Currently Being Moderated

        and they will need to pay Marriott deal expenses worth another 18M

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  • Re: Marriott still chasing Starwood
    brightlybob Platinum 10 Reviews
    Currently Being Moderated

    Thanks for sharing that dansplan, I wasn't aware till I logged in.

     

    Marriott sees real synergies here and an opportunity to enormously increase its footprint. I'm not a great believer in these mega mergers producing anything other than fees to lawyers and bankers and bonuses to the board but this I am sold on,

     

    More coverage means a bigger opportunity to negotiate more contracts with event and conferencing  businesses who will see considerable advantages in dealing with one hotel company for many events but need very wide coverage. Another major benefit of Marriotts increased size will be more guests taking the view they can actually make the number of stays in the rewards program to make collecting points worthwhile and hence move to booking via Marriott, saving the enormous online travel agents fees.

     

    Marriott initially got an absolute bargain, now it's a fairer price but from Marriotts points of view still represents good growth at a good price. However Anbang are motivated by a different desire, that to shelter their huge cash pile in stable dollar denominated assets provinding  superficially more attractive asset base for their insurance business to lean on. However they are making a big mistake if they believe it's worthwhile overpaying as Starwood has found it difficult to create value with their top-heavy hotel balance and Anbang are unlikely to have the skill set to change that. Value can quickly evaporate and even if it's in hard US Dollars it's still lost money!

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

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