Marriott to buy Starwood to create world’s biggest hotel chain


Marriott International Inc will buy Starwood Hotels and resorts Worldwide inc for $12.2 billion to create the world’s largest hotel chain with top brands including the Sheraton, Ritz Carlton and the Autograph Collection.
The combined company will own or franchise more than 5,500 hotels with 1.1 million rooms worldwide, giving Marriott greater presence in markets such as Europe, Latin America and Asia including India and China.
Marriott currently has three-quarters of its rooms in the United States. Starwood, which also owns St. Regis and Aloft hotel brands, gets nearly two-thirds of its revenue from outside the country. 
In premarket trade Starwood shares fell 5.2 percent to $71.07 this afternoon, below the offer price of $72.08. This indicates investors are unhappy with the offer being made at a 4 percent discount to the stock’s Friday close. Marriott shares are also looking set for a  lower open with futures pointing to first trading being around the $71.65 mark, 1.3 percent lower than Friday’s close.