News
Marriott and Starwood sign amended merger agreement
Maldives.net.mv – Marriott International, Inc and Starwood Hotels & Resorts Worldwide, Inc announced today that the companies have signed an amendment to their definitive merger agreement that creates the world’s largest hotel company.
Under the terms of the amended merger agreement, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International, Inc. Class A common stock for each share of Starwood Hotels & Resorts Worldwide, Inc. common stock. Excluding its timeshare business, the transaction values Starwood at approximately $13.6 billion ($79.53 per share), consisting of $10.0 billion of Marriott International stock, based on the closing price of $73.16 on March 18, 2016, and $3.6 billion of cash, based on approximately 170 million outstanding Starwood shares. Starwood shareholders will own approximately 34 percent of the combined company’s common stock after completion of the merger, based on current shares outstanding.
In addition, Starwood stockholders are expected to receive separate consideration in the form of Interval Leisure Group common stock from the spin-off of the Starwood timeshare business and subsequent merger with ILG, currently valued at $5.83 per Starwood share, based on ILG’s share price as of market close on March 18, 2016. Both companies continue to expect the closing of this transaction will occur well before the planned date of the Marriott-Starwood merger closing. The amended agreement and the ILG transaction have a combined current value of $85.36 per share of Starwood common stock.
As a result of extensive due diligence and joint integration planning, Marriott is confident it can achieve $250 million in annual cost synergies within two years after closing, up from $200 million estimated in November 2015 when announcing the original merger agreement.
This revised agreement offers superior value for Starwood’s shareholders, the ability to close quickly, and provides value creation potential that will allow both sets of shareholders to benefit from improved financial performance. Marriott and Starwood have already obtained important regulatory consents necessary to complete the transaction, including clearing pre-merger antitrust reviews in the United States and Canada.
Arne Sorenson, President and Chief Executive Officer of Marriott International, said: “After five months of extensive due diligence and joint integration planning with Starwood, including a careful analysis of the brand architecture and future development prospects, we are even more excited about the power of the combined companies and the upside growth opportunities. We are also more confident of achieving our updated target of $250 million of cost synergies. With a higher cash component in the purchase price, we have improved the transaction’s financial structure as well.
“We expect to accelerate the growth of Starwood’s brands, leveraging Marriott’s worldwide hotel development organization and owner and franchisee relationships. On the top line, combined sales expertise and increased account coverage should drive additional customer loyalty and increase revenue. Hotel level cost savings should benefit owners and franchisees, including better efficiencies in reservations, procurement and shared services. The company will have a broader global footprint and the most powerful frequent traveler programs in the industry, strengthening Marriott’s ability to serve guests wherever they travel.
“We are also bringing together two of the most talented and experienced teams in the industry. Together, they will combine their innovative ideas and service commitment to deliver unforgettable guest experiences.”
Bruce Duncan, Chairman of the Board of Directors of Starwood Hotels & Resorts Worldwide, said, “We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders. We continue to be excited about the combination of Starwood and Marriott, which will create the world’s largest hotel company with an unparalleled platform for global growth in the upscale segment. We are also pleased with the progress the two companies have made toward closing.
“Throughout this process, our Board of Directors has remained laser-focused on maximizing value for Starwood shareholders, and Marriott’s revised offer provides the highest value to our shareholders through long-term upside potential from shared synergies and ownership in one of the world’s most respected companies, as well as significant upfront cash consideration.
“With its asset light business model, multi-year industry leading unit growth, powerful brands, and consistent return of capital to shareholders, Marriott stock has consistently traded at valuation premiums to its public peers.”
Marriott expects the transaction to be roughly neutral to adjusted earnings per share in 2017 and 2018.
Marriott remains committed to maintaining an investment grade credit rating after the merger. While Marriott anticipates its leverage will be modestly higher than targeted levels when the transaction closes, it expects to reach targeted leverage of 3.0x to 3.25x adjusted debt to adjusted EBITDAR by year-end 2016.
One-time transaction costs for the merger are expected to total approximately $100 million to $130 million. Transition costs are also expected to be incurred over the next two years.
The transaction is subject to Marriott International and Starwood Hotels & Resorts Worldwide stockholder approvals, completion of Starwood’s planned disposition of its timeshare business, obtaining remaining regulatory approvals and the satisfaction of other customary closing conditions. Marriott and Starwood have each agreed to convene its respective stockholder meeting to consider the transactions contemplated by the amended merger agreement on March 28, 2016 and to immediately adjourn such meeting until April 8, 2016. Assuming receipt of the necessary approvals, the parties continue to expect the transaction to close in mid-2016. The break-up fee payable by Starwood in certain circumstances increased to $450 million from $400 million. In circumstances in which the termination fee is payable , Starwood would also be required to reimburse Marriott for up to $18 million of actual costs incurred by Marriott in connection with the financing of the transaction.
As announced on March 18, 2016, Starwood’s Board previously determined that the binding and fully financed proposal from a consortium consisting of Anbang Insurance Group Co., Ltd., J.C. Flowers & Co. and Primavera Capital Limited to acquire all of the outstanding shares of common stock of Starwood for $78.00 per share in cash constituted a “Superior Proposal,” as defined in the merger agreement. The Consortium’s proposal, together with the ILG transaction, have a combined current value of $83.83 per Starwood share. In connection with the amended merger agreement, Starwood’s Board of Directors has determined that the Consortium’s proposal no longer constitutes a “Superior Proposal”, and therefore under the merger agreement Starwood is no longer permitted to engage in discussions or negotiations with, or provide confidential information to, the Consortium. Starwood’s Board unanimously recommends the amended merger agreement with Marriott to Starwood’s stockholders.
Cooking
Domenico Carella and Fabrizio Margarita unite for innovative culinary experience at Patina Maldives
Patina Maldives has announces an exclusive culinary pop-up, Ultra Milano by Domenico Carella, taking place from November 9th to November 13th, 2024. This exclusive experience will showcase the innovative culinary and mixology talents of Domenico Carella, a renowned figure in the food and beverage industry.
Carella has built an impressive career as a professional chef, bartender, and manager. With over a decade of experience, he has mastered the art of blending ingredients and flavours to create dishes that perfectly balance texture and taste. His culinary journey has taken him around the world, earning accolades such as Manager of the Year in Asia by “That’s Shanghai” in 2015.
At this event, Domenico Carella’s mixology will complement Fabrizio Margarita’s pizza artistry, reimagining dining with a sustainable flair at Veli Bar in Patina Maldives, Fari Islands.
Carella’s approach to food and beverage emphasises environmental respect and sustainability. His holistic vision ensures that all departments, from the kitchen to the bar, work harmoniously, aligning the procurement of raw materials to create a unified and sustainable operation.
Awards
GO TRAVEL Awards honour Sun Siyam Resorts for excellence in sustainable tourism practices
Sun Siyam Resorts has been awarded the title of “Most Influential Sustainable Hotel Group of the Year” at the 2025 GO TRAVEL Hotel Travel Excellence Awards. This recognition, presented by GOGO Media and Weibo Shanghai, celebrates Sun Siyam Resorts’ exceptional contributions to sustainable tourism in the Maldives and Sri Lanka.
This prestigious award highlights the group’s dedication to blending authentic guest experiences with a strong commitment to environmental and social responsibility. At Sun Siyam Resorts, sustainability is not just a practice but an integral part of its operations, shaping how the group interacts with the environment and supports local communities.
Central to Sun Siyam Resorts’ achievements is the “Sun Siyam Cares” program, which encompasses various eco-friendly and community-focused initiatives. These include reducing energy and water consumption, managing waste efficiently, supporting local community development, and investing in renewable energy sources. Through these efforts, Sun Siyam Resorts actively works to reduce its carbon footprint and environmental impact.
The group’s commitment extends beyond environmental conservation to cultural preservation, emphasising the protection of local heritage and traditional practices. By prioritising these sustainable practices, Sun Siyam Resorts contributes not only to environmental well-being but also to the socio-economic growth of the communities where it operates.
This recognition at the GO TRAVEL Hotel Travel Excellence Awards underscores Sun Siyam Resorts’ leadership in sustainable tourism, marking a significant milestone in the group’s journey to create memorable, eco-friendly travel experiences. Through a seamless blend of luxury and sustainability, Sun Siyam Resorts offers guests the chance to enjoy extraordinary vacations while leaving a positive impact on the world.
Featured
Tennis legend Marion Bartoli leads exclusive lessons at Siyam World Maldives
From December 10th to 14th, Siyam World Maldives will host an unforgettable event for tennis enthusiasts and sports lovers. In collaboration with LUX Tennis, the resort welcomes former World No. 7 and Wimbledon Champion Marion Bartoli for an exciting LUX Tennis Star Event, featuring private lessons, group clinics, and a Meet & Greet with the tennis legend.
After establishing itself as a premier destination for football camps and hosting some of the sport’s greatest players, Siyam World is now shifting focus to tennis, with Marion Bartoli as the latest star to join its roster of sports icons. Guests will have the opportunity to step onto the court with Bartoli herself, gaining insights and tips from one of the sport’s best, whether they’re experienced players or beginners looking to improve their skills.
In collaboration with LUX Tennis, the resort offers a diverse range of tennis activities, from private one-on-one lessons to energetic group clinics, catering to all levels of players. Additionally, a Complimentary Meet & Greet session provides fans with the chance to take photos, engage in conversation with Bartoli, and hear about her inspiring journey from professional player to tennis icon.
Marion Bartoli is a celebrated former professional tennis player from France, known for her unique playing style and remarkable career achievements. She captured the prestigious Wimbledon Championships singles title in 2013, becoming the sixth player in the Open Era to win the title without dropping a set. Bartoli was also a Wimbledon finalist in 2007 and reached the semifinals at the French Open in 2011. Throughout her career, she earned seven singles and three doubles titles on the WTA Tour. Recognised for her unconventional approach, she played with both hands on her forehand and backhand, distinguishing her from traditional players. Bartoli reached her career-high ranking of World No. 7 on January 30, 2012, and returned to this ranking on July 8, 2013, following her Wimbledon victory.
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