Marriott buys Starwood Hotels for $12.2bn

New York - US-based Marriott International said on Monday that it had bought Starwood (an American hotel and leisure company) for $12.2 billion, creating the world's largest hotel chain bringing together such famous institutions as Ritz-Carlton, Renaissance, W, Westin and Sheraton.

The boards of directors of both companies unanimously approved the merger, under which the companies will operate or franchise more than 5 500 hotels with 1.1 million rooms worldwide.

Starwood shareholders will receive 0.92 shares of Marriott International, Class A common stock and $2.00 in cash for each share of Starwood common stock, a joint statement from the companies read.

The merger "has a current value of $72.08 per Starwood share, including the $2 cash per share consideration."

Starwood shareholders will also receive about $7.80 per share from a transaction set to close prior to the Marriott-Starwood merger closing - the spin-off of the Starwood timeshare business and its merger with Interval Leisure Group, which has an estimated value of approximately $1.3bn.