How Does Marriott Buy Starwood Case

The table briefly recalls some of the facts already mentioned: in fact, as Marriott locates in the US and Canada about 80% of its owned or managed properties, Starwood has there a comparatively lower percentage, around 60%, and instead claims a stronger international presence that returns around 35% of its total room revenues. This difference has been seen as one of the reasons for Marriott to buy Starwood, as we are going to explain later. The data on brands divided by business segment confirm also that Starwood proves quite weak compared to Marriott in the limited or select service category.
In conclusion, the study identifies which company holds key advantages in any business segment, hence who is the soundest to prevail and lead the way for the merged entity into any brand category.
Marriott’ and Starwood’s deal
4. Negotiations
According to the statement of Marriott’s CEO Sorenson, only
and HNA Group, parent of Hainan Airlines Co. and sovereign-wealth fund China Investment Corp., also reportedly competed to win clearance to bid on Starwood.” However, the Chinese government wanted to have just one domestic company to making the bid, in order to avoid a big raise in the requested price due to higher competition.
An acquisition of Starwood would represent the most important takeover of a US company by a Chinese buyer; this takeover would top the 2013 purchase of Smithfield Foods for almost $7 billion.
However, when everything seemed to be made for the Chinese-American marriage, on March 21 Marriott did a counterproposal by offering $79.53/share or approximately $13.6 billion, consisting of $10.0 billion of Marriott International stock, based on the closing price of $73.16 on March 18, 2016, and $3.6 billion of cash, based on approximately 170 million outstanding Starwood