Largest hotel chain

The Marriott-Starwood merger is historic because it creates the world’s largest hotel chain. Spanning across 110 countries, it will have more than 5,700 properties. Combined, the properties will have a total of 1.1 million rooms—almost 40% more than its closest rival Hilton Worldwide (HLT). It also means that globally, the combined duo will control one out every 15 hotel rooms. Currently, Hilton has 773,000 rooms, followed by Intercontinental Group (IHG) with 766,000 rooms.

Marriott-Starwood Merger Creates the World’s Largest Hotel Chain

Big brands

The merger also brings together many big brands—a total of 30 brands, in fact. The brands include big names from Marriott (MAR) like Ritz-Carlton, Marriott, and Courtyard along with Starwood’s Sheraton, Westin, W Hotel, and St. Regis.

Uphill battle

However, the journey hasn’t been easy. Initially, Starwood received interest from many players including Hilton, Hyatt (H), Intercontinental Group, Marriott, and Chinese insurance group Anbang. Marriott and Anbang were the only ones that lasted, but they ended up in a bitter bidding war. The war ended when the Chinese company suddenly withdrew its offer three days after the latest offer. To learn more, read The Marriott-Anbang Takeover Tussle for Starwood.

According to Marriott’s final offer, Starwood shareholders would receive $21 per share in cash and 0.80 shares of Marriott for each share they hold of Starwood. This values Starwood at ~$13.6 billion—a significant premium to Marriott’s initial offer of $12 billion in November 2015.

Investors can gain exposure to Marriott by investing in the First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW), which invests ~1.1% of its portfolio in the stock. In the next part, we’ll discuss the events in detail.

Latest articles

On June 25, the soft economic data isn't an isolated case. We have been getting a flurry of dismal data points. The US economy added only 75,000 non-farm jobs in May.

French retail giant Carrefour has agreed to sell an 80% stake in its China operations for ~$705 million to, an Alibaba (BABA) backed company. While China represents a massive opportunity with its almost 1.4 billion population, it has not been an easy market for foreign companies, at least when it comes to retail and e-commerce.

On June 25, US Secretary of Agriculture Sonny Perdue told CNN in an interview that the US-China trade war has impacted US farmers. He said that farmers “are one of the casualties” of the trade war.

25 Jun

Hang Seng and Nikkei 225 Lose amid Trade Worries

WRITTEN BY Mayur Sontakke, CFA, FRM

After rising marginally yesterday, Hong Kong’s Hang Seng Index fell today. The index lost 1.15% to end at 28,185.98. Only seven stocks in the index rose, while 39 declined. Four remained unchanged. Tencent Holdings (TCEHY) was one of the worst performers with a 1.8% fall.

Square (SQ) was absent from the list of the inaugural members of the Libra Association, the entity that will ensure that Facebook’s (FB) Libra cryptocurrency works as intended. Nearly 30 companies have joined the Libra Association.

Kroger (KR) stock fell 2.2% on June 20—the day the company announced its results for the first quarter, which ended on May 25. The negative sentiment for the stock continued.