According to announcement from March 21, 2016 Marriott has won the takeover of Starwood by proposing revised bid. Hence, by accomplishing this stage Marriott will hold a status of largest global hotel operating company.
Referring to Bloomberg Hotel owners in New York and Chicago challenged Marriott International Inc.’s takeover of Starwood Hotels and Resorts Inc. claiming that this buyout will severely violate agreement of exclusivity.
The owning company of Times Square in New York, Dream Team Hotel Associates and the owning company of Sheraton Grand Chicago, Cityfront Hotel Associates Limited Partners appealed that this buyout will interfere into their business since both brands (Sheraton and Westin) are under Starwood brands umbrella. They aim now to influence on the process of takeover by initiating a lawsuit against Marriott and Starwood.
However Marriott is ready to finalise this bustling merger deal regardless of appeared circumstances.
By completing this merger worth of USD 12.9 billion Marriott will become the world’s largest hotel operating company by room inventory.
The deal is planned to be completed by mid of the year. Marriott International Inc. currently holds 19 brands, which will be supported by additional 10 after the completion of the buyout.
Both Marriott and Starwood sides refused to comment on the suit.
Hotel Management Expert