In a $12.2 billion deal, Marriott International Inc. will buy Starwood Hotels & Resorts Worldwide Inc., producing the world’s biggest hotel conglomerate, with significant Hawaii operations.
Starwood -- the parent of the Sheraton, Westin, W and St. Regis brands -- has been for sale since April, and such other chains as Wyndham and Intercontinental (parent of Holiday Inn) had kicked the tires. Hyatt had also been mentioned as a potential buyer.
The deal, one share of Marriott (MAR) for 0.92% share of Starwood (HOT) plus $2 cash per share, amounts to 96% of what Starwood was trading before up to Monday morning, plus whatever shareholders reap from spinning off the Starwood timeshare division. Starwood stock has fallen 14% since the announcement in April that the company was looking for a buyer.
While Starwood is smaller than Marriott or Hilton, it has more hotels in China than any other U.S. hotelier, and an extensive operation in Hawaii. Kyo-ya Corp. owns the Sheraton Waikiki, Royal Hawaiian, Moana Surfrider and Princess Kaiulani hotels, which all carry Starwood brands.
In Waikiki, Hilton Hawaiian Village has the most hotel rooms, 2,860; the Sheraton Waikiki is second with 1,634; the Waikiki Beach Marriott is third with 1,310; the Hyatt Regency Waikiki is fourth with 1,230; and the Starwood-managed Princess Kaiulani is fifth with 1,140.