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.
Male’ Aerated Water Company (MAWC), the authorised bottler of The Coca-Cola Company in the Maldives, on Thursday hosted the Official FIFA World Cup 2026™ Match Ball Handover Ceremony, presenting Football Legends of Maldives with official FIFA World Cup 2026™ match balls signed personally by Dr Mohamed Muizzu, President of Maldives.
Held in partnership with the Ministry of Youth Empowerment, Sports and Fitness, the ceremony recognised former national footballers whose achievements, service and influence have helped shape football in the Maldives and inspired generations of players and supporters.
The Coca-Cola Company has been an official partner of FIFA since 1974, making it one of the longest-standing partnerships in the global sport. For MAWC, the handover brought that global partnership to life locally by connecting the FIFA World Cup with people who have contributed to Maldivian football history.
As the sole authorised Coca-Cola bottler in the Maldives for over 35 years, MAWC has supported local sport through partnerships, campaigns and community initiatives. The ceremony continued that commitment by recognising the legacy of players who represented the Maldives and contributed to the growth of football in the country.
“Maldives’ football legends have given generations of supporters moments of pride and have played an important role in shaping the country’s sporting history. At MAWC, we believe recognising their contribution is as important as supporting the next generation. Through our partnership with Coca-Cola and FIFA, and in collaboration with the Ministry of Youth Empowerment, Sports and Fitness, we are honoured to celebrate their legacy. These match balls are a token of our appreciation for what they have given to Maldivian football,” said Milind Derasari, Chief Operating Officer, MAWC.
Adding to the excitement of the football season, MAWC ran a nationwide FIFA World Cup 2026™ consumer promotion from 21 March to 24 May 2026. Eight winners received an all-expenses-paid experience for two to attend a FIFA World Cup 2026™ match. Hundreds more won Coca-Cola branded merchandise and other prizes during the campaign, bringing the excitement of the world’s largest football tournament to consumers across the Maldives.
MAWC remains committed to building partnerships that support the development of sports across the Maldives, working with the Government of Maldives and other partners.
Avani Hotels & Resorts has launched Avani Book Club, a global initiative designed to help travellers connect with destinations through books, local stories and shared reading experiences.
The programme is being introduced at selected Avani hotels and resorts worldwide, including Avani+ Fares Maldives Resort in Baa Atoll. It combines curated reading lists with book corners, book swaps, author-led events, children’s storytelling and destination-inspired food and beverage experiences.
Avani said the initiative was developed for travellers seeking slower and more meaningful ways to spend their time while away. It also responds to the growth of online reading communities such as BookTok and Bookstagram, which have influenced how readers discover books and incorporate literature into their travel experiences.
At the centre of Avani Book Club is a global list of 30 titles selected for 15 properties across Asia, Australia, Europe, the Middle East, Africa and the Indian Ocean. Each title has been chosen to reflect the culture, character or atmosphere of its destination.
At Avani+ Fares Maldives, guests can read Folk Tales of the Maldives, a collection linked to the country’s storytelling traditions. A mobile book buggy will offer poolside reading material, while wellness-focused titles will be available at the resort’s spa.
Other destination-based selections include Pitchaya Sudbanthad’s Bangkok Wakes to Rain at Avani+ Riverside Bangkok Hotel and Jessie Burton’s The Miniaturist at Avani Museum Quarter Amsterdam.
Avani Rio Novo Venice Hotel will feature Kacie Rose’s You Deserve Good Gelato, which explores food, travel and personal reinvention. Rose is also scheduled to participate in an Avani Book Club event and book signing in Venice during the European summer.
At Avani+ Barbarons Seychelles, the collection includes Katherine May’s Wintering, while Avani Victoria Falls Resort will feature Namwali Serpell’s The Old Drift, a novel tracing Zambia’s history across several generations. Australian titles in the programme include The Rosie Project and Big Little Lies.
Participating properties will complement the global reading list with locally developed activities and partnerships.
Avani Alonso Martínez Madrid Hotel regularly hosts local book clubs, while Avani Museum Quarter Amsterdam plans to hold a Book Swap and Reading Night during WorldPride in partnership with The Swap Club. The event will bring together guests and residents for readings, poetry and discussions centred on LGBTQ+ stories.
In Thailand, Avani Ratchada Bangkok Hotel will introduce “Sip the Story”, pairing books about the country with themed coffees, matchas and cocktails. Avani Ao Nang Cliff Krabi Resort will offer a story-inspired afternoon tea by the pool, with menus developed around selected titles.
Avani+ Koh Lanta Krabi Resort will focus on younger guests through stories about Gok and Gek, a pair of hornbills living at the property. Children can follow their story through the Hornbill Heroes activity booklet and When Gok Met Gek, a bedtime story illustrated by a Thai artist.
Avani Book Club is now available at participating Avani properties, with hotel-led events and activities scheduled to be introduced throughout the year.
Minor Hotels’ properties in the Maldives have received seven accolades in the Travel + Leisure Luxury Awards Asia Pacific, with Anantara Kihavah Maldives Villas recognised in five categories and Niyama Private Islands Maldives securing two awards.
Anantara Kihavah Maldives Villas was ranked third among the Maldives’ Best Resorts and second in the Best House Reefs category. The resort also placed fourth in the Most Outrageous Villas, Best Resort Pools and Best Resort Spas categories.
Located in Baa Atoll, Anantara Kihavah is known for its private pool villas, surrounding reef and underwater restaurant. Anantara Spa at the resort was ranked fourth among the country’s resort spas.
Niyama Private Islands Maldives was recognised for The Crescent, its private island compound, which placed third in the Most Outrageous Villas category. Drift Spa at Niyama was ranked sixth among the Best Resort Spas in the Maldives.
The Crescent consists of a collection of villas located on a private section of the resort and is designed for families and groups travelling together. Drift Spa is situated within Niyama’s tropical surroundings and offers treatment rooms, relaxation spaces and wellness experiences.
The Maldives accolades contributed to a record 31 awards received by Minor Hotels across the Asia-Pacific region, compared with 26 in the previous year.
The group’s flagship luxury brand, Anantara Hotels & Resorts, was also named the region’s number-one Favourite Hotel Brand of the Year.
“The T+L readers have spoken and, with a record 31 awards, Minor Hotels stands among the region’s most celebrated hospitality groups,” said Nicholas Smith, Vice President Operations – Asia at Minor Hotels.
“I am particularly proud of Anantara being named the region’s favourite brand, and of our teams in Laos and Thailand for securing their number-one positions. These results reaffirm that our focus on innovation and on creating standout guest experiences continues to resonate with travellers.”
Elsewhere in the region, Avani+ Luang Prabang in Laos was named the Best Hotel, while its general manager, Max Chin, was ranked first in the Best General Managers category.
Anantara Chiang Mai Resort was voted Thailand’s Best Upcountry Hotel, while other Minor Hotels properties in Thailand, Vietnam, Cambodia, Indonesia and Malaysia were recognised across resort, city hotel, spa and pool categories.
Minor Hotels’ travel experiences also featured in the awards, with Mekong Kingdoms and Loy Pela Voyages ranked second and fourth, respectively, among the region’s Best River Cruises.
GHA DISCOVERY, the loyalty programme of the Global Hotel Alliance, was named the number-one Hotel Loyalty Programme. Minor Hotels participates in the programme through Minor DISCOVERY.
The Travel + Leisure Luxury Awards Asia Pacific are determined through a readers’ survey, with travellers voting across categories covering hotels, resorts, villas, spas, pools, cruises and loyalty programmes.
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