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.
Sun Siyam Iru Veli recently hosted its inaugural ‘Wellness in Motion Week,’ welcoming guests, local wellness leaders, and global experts for a curated celebration of movement, mindfulness, and holistic reconnection in the heart of the Maldives. The week-long programme attracted over 150 participants, offering a series of transformative events aimed at promoting deeper wellbeing in harmony with nature.
To commemorate Global Wellness Day, the island held the first-ever Maldives Wellness Run in partnership with iRunners Maldives on June 14th. Set against the stunning backdrop of the shoreline, the 4-kilometre beach run featured over 85 guests and team members, who completed an invigorating course around the island. Embracing the theme #ReconnectMagenta, participants were encouraged to connect with themselves, their community, and the surrounding environment through intentional movement and breath.
Central to the week were intimate Mind & Body sessions led by two international wellness experts. Marina Violinha, a holistic women’s health and fitness specialist, conducted a sunset yoga session and an interactive talk at Magoodhoo Beach, guiding attendees in exploring feminine strength and emotional balance. Meanwhile, Shane Seery, an award-winning executive health coach, offered functional movement coaching on the resort’s tennis courts, combining personalised support with outdoor flow.
On June 20th, 88 team members took part in a sunrise yoga session led by the resort’s spa team. This gathering aligned with the global theme ‘Yoga for One Earth, One Health,’ highlighting the resort’s commitment to wellbeing as a shared value among both staff and guests.
The week concluded on International Yoga Day (June 21st) with a serene sunrise yoga and wellness ceremony at Turtle Beach. Facing the Indian Ocean, participants welcomed the day in stillness and unity.
Through Wellness in Motion Week, Sun Siyam Iru Veli underscored its dedication to offering meaningful, restorative experiences where nature, culture, and conscious living converge. From sunrise yoga sessions and barefoot beach runs to expert-led coaching and immersive spa rituals, the resort continues to redefine island wellness and rejuvenation.
Hideaway Beach Resort & Spa, a multi-award-winning luxury destination located in the northern Maldives in Haa Alifu Atoll, has unveiled a new addition to its exceptional wellness and recreation amenities: an indoor pickleball court, housed within the newly established Hideaway Pickleball & Badminton Centre.
This latest enhancement further expands the resort’s impressive array of recreational activities, underlining its commitment to health, fitness, and the concept of active luxury living.
The indoor pickleball facility offers rental options for rackets, shoes, and balls, along with the flexibility to book the court either with or without a coach or hitting partner. The court has been professionally surfaced to ensure optimal playing conditions. As a chargeable experience, it guarantees premium quality, privacy, and personalised service.
This new addition complements a wide selection of fitness and recreational facilities already available at the resort, including badminton within a newly renovated, spacious fitness centre, a fully equipped games room with foosball, table tennis, and billiards, and a Fitness Bar serving protein shakes and other wellness beverages. These amenities ensure a wide range of engaging experiences, regardless of weather conditions.
The resort’s full spectrum of sporting and wellness offerings now includes:
- Indoor Golf Simulator
- Putting Green
- Fitness Centre
- Water Sports
- Games Room
- Wellness Studio
- Basketball
- Football
- Beach Volleyball
- Floating Aqua Park
- Padel
- Table Tennis
- Pickleball
- Badminton
These facilities place Hideaway among the top 5-star luxury resorts in the Maldives, distinguished by one of the most extensive sports offerings in the region.
In addition to its active pursuits, Hideaway also features the tranquil Hideaway Spa, nestled within the island’s lush tropical surroundings. Each spa treatment is designed as a holistic ritual, complemented by natural soundscapes—rustling palms, birdsong, and gentle breezes—to promote deep relaxation and rejuvenation for both body and mind.
Renowned for its 360-degree privacy, Hideaway Beach Resort & Spa is enveloped in verdant vegetation and offers expansive, well-separated villas. Each villa includes a personal butler to provide tailored service, reflecting the resort’s philosophy that true luxury lies in space and seclusion. Guests can also enjoy immediate access to the island’s double house reef, ideal for snorkelling and marine exploration just steps from the shore.
With its blend of untouched natural beauty, exclusive privacy, and heartfelt Maldivian hospitality, Hideaway Beach Resort & Spa continues to redefine luxury in the Maldives—offering exceptional experiences across wellness, adventure, and relaxation for the discerning traveller.
Kuda Villingili Resort Maldives has been ranked among the Best Resort Pools in the Travel + Leisure Luxury Awards Asia Pacific 2025. This prestigious accolade, determined by votes from discerning travellers across the region, comes at a time of dual celebration for the resort as it marks its fourth anniversary.
Located in the picturesque North Malé Atoll, just 30 minutes by speedboat from Velana International Airport, Kuda Villingili has garnered a reputation for its seamless blend of design, immersive experiences, and strong sense of community. Central to the resort’s appeal is its iconic 150-metre swimming pool—the largest in the Maldives. This architectural masterpiece redefines leisure and stands as a social and visual centrepiece of the island.
Encircled by swaying palms, luxurious daybeds, and jacuzzis, the pool connects effortlessly to the resort’s trio of lively bars and eight globally inspired restaurants. It is more than a swimming area; it is a meticulously designed space offering distinct zones to cater to diverse guest preferences. These include a 50-metre Olympic-sized lap pool for fitness enthusiasts, dedicated areas for daily aqua fitness and yoga sessions, jacuzzis tucked beneath tropical greenery, and shallow zones tailored for children. The pool also transforms into a romantic setting for candlelit dinners beneath the stars, offering couples a unique dining experience under the Milky Way.
Deepa Manuel, General Manager of Kuda Villingili Resort Maldives, commented on the recognition, “This award is a testament to our commitment to creating unforgettable, design-led experiences with heartfelt Maldivian hospitality. The pool was designed to bring people together—from families and fitness lovers to couples and solo travellers. It’s where our guests laugh, connect, and relax. To be ranked among the top three Best Resort Pools by Travel + Leisure readers just as we celebrate our fourth anniversary is a beautiful affirmation of what we have created here.”
Further affirming its status, Kuda Villingili also recently received the Reader’s Favourite Overseas Hotel award at the Travel + Leisure China Travel Awards 2024, underscoring its growing popularity across key Asian markets.
Kuda Villingili continues to push the boundaries of luxury island living, rooted in wellness, connection, and authenticity. The resort boasts eight exceptional dining venues offering 11 global cuisines, including the signature beachfront Japanese-Peruvian restaurant Mar-Umi and Earth, which celebrates Maldivian and vegetarian dishes. Guests also enjoy access to a wellness-focused private island spa, an active surf culture with proximity to the famed Chickens Break, and 75 luxurious villas and residences—many featuring private infinity pools and offering spaces for both solitude and meaningful connection.
Whether guests are swimming laps at sunrise, soaking in a jacuzzi beneath the stars, or toasting during a floating dinner at dusk, the pool at Kuda Villingili offers more than just a recreational space—it embodies an experience. This recognition from the Travel + Leisure Awards reflects the heartfelt appreciation of guests who consistently celebrate not only the beauty of the resort but the soulful experiences it provides.
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