Marriott Hotels Buys Starwood Properties

Marriott International Inc. agreed to acquire Starwood Hotels & Resorts Worldwide Inc. for $12.2 billion, a surprise outcome to a heated process that involved some of the world’s largest hotel groups.
The combination would create the No. 1 hotel company globally—with more than a million rooms—and bring together 30 brands across all lodging segments, from Starwood’s higher-end W Hotels, St. Regis and Westin brands to Marriott’s limited-service offerings like Courtyard by Marriott and its extended-stay chain Residence Inn.
Starwood had been listening to sales offers for months, and a number of global players—including big Chinese companies—considered a bid for the Stamford, Conn.-based hospitality giant, according to people familiar with the matter.
It later narrowed to a two-horse race between Marriott and Hyatt Hotels Corp., with Marriott emerging as the surprise winner—an outcome in doubt as recently as late last week, when Starwood and Hyatt were putting the finishing touches on an agreement between them, according to people familiar with the matter.

With less competition comes higher rates.