Move over Hilton Worldwide, Marriott International will officially become the world’s largest hotelier.
According to the Associated Press, Marriott is set to buy rival hotel chain Starwood for a whopping $12.2 billion.
If the deal goes through, Marriott’s number of rooms will increase by 50 percent. Keep in mind that there will now be 5,500 properties and 1.1 million rooms around the world, because brands such as W, Westin, and St. Regis are all Starwood brands.
Back in April, Marriott acquired Canadian Chain Delta Hotels and Resorts. As you can see the company is growing quite aggressively.
But not all is said and done just yet. Investors for both hotel chains have to approve the deal. It’s also important to keep in mind that the deal is being done with just $340 million in cash and $11.9 billion in stock. Essentially, you’re seeing a pretty lock cash-and-sock deal, with cash accounting for 2.8 percent.
On the bright side, if it does get approved, Marriott will be appealing to a whole new demographic of young travelers, so cheers!