Marriott & Starwood Create World's Largest Hotel Company In $17b Deal

Marriott International and Starwood Hotels & Resorts Worldwide have announced that both companies have unanimously approved a merger agreement under which both companies will create the world's largest hotel company.

Marriott International has reportedly paid $17 billion to acquire Starwood.

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.

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.

Arne Sorenson, President and Chief Executive Officer of Marriott International said, "The driving force behind this transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace.""We expect to benefit from the best talent from both companies as we position ourselves for the future. I know we'll do great things together as The World's Favourite Travel Company."Arne Sorenson will remain President and CEO of Marriott International following the merger and the Marriott heard quarters will remain in Bethesda, Maryland.