News

Marriott and Starwood sign amended merger agreement

Published

11 years ago

March 22, 2016

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.

Related Topics:Marriott International Starwood Hotels & Resorts

Up Next

W Maldives appoints Anton Birnbaum as General Manager

Don't Miss

Kurumba Maldives offers scholarships to develop Maldivian talent

Click to comment

News

Patina Maldives announces Orthodox Christmas celebrations with Russian cuisine and live entertainment

Published

19 hours ago

October 18, 2026

m@ldives

From 4 to 7 January 2027, Patina Maldives, Fari Islands, embraces the spirit of Orthodox Christmas through a celebration of Russian culinary traditions, live music and shared experiences for all generations. Set against the natural beauty of the Indian Ocean, the occasion brings together cherished customs and contemporary island living, creating meaningful opportunities for connection and discovery.

On 4 and 5 January, Fari Beach Club presents special dining experiences with Guest Chef Maxim Artyukhov, Brand Chef and Executive Chef of SATEEN GROUP. Drawing inspiration from the culinary heritage of the Don region, Maxim Artyukhov brings his interpretation of European and Russian cuisine to the island, combining locally sourced farm produce with contemporary culinary techniques and the rich flavours of regional gastronomy.

On 6 January, Helios Pavilion becomes the setting for an evening of culinary discovery and live entertainment. Christmas cocktails and refined canapés welcome guests before a specially curated menu brings together international delicacies and much-loved Russian specialities by Chef Maxim Artyukhov. The evening unfolds to the sounds of Anton Belyaev, founder and frontman of Therr Maitz. Blending indie, electronic, soul and pop influences, his live performance fills the evening with energy and festive spirit, while a spectacular fireworks display illuminates the skies above the Indian Ocean.

Younger guests discover the island through a programme designed to inspire curiosity, creativity and a sense of adventure. On 6 January, a Mindful Walk, Kids Yoga, Wildflower Challenge, Green Creations, outdoor games and an introduction to snorkelling invite children to explore their surroundings in new ways. The Padel Tennis Tournament brings guests together through friendly competition and shared sporting experiences. While parents enjoy the Christmas dinner, younger guests have their own dedicated space for play and entertainment.

On 7 January, Russian winter folklore comes to life with a special appearance by Ded Moroz and his granddaughter, Snegurochka. Beloved figures of the Russian Christmas tradition, they bring festive cheer to the island and delight younger guests with special gifts.

At Patina Maldives, Orthodox Christmas brings cherished traditions into a setting defined by natural beauty, thoughtful experiences and meaningful connections. From Russian culinary heritage and live music to moments of discovery for younger guests, the celebration offers an opportunity to come together, share the spirit of the occasion and create lasting memories by the Indian Ocean.

For more information, please visit the resort’s website or contact reservations.maldives@patinahotels.com.

Cooking

Belgian Chef Wout Bru to bring exclusive dining experiences to Meyyafushi, Fushifaru Maldives

Published

23 hours ago

October 18, 2026

m@ldives

Acclaimed Belgian chef Wout Bru will bring his distinctive culinary vision to the Maldives for an exclusive residency across Meyyafushi and Fushifaru Maldives from 31 October to 7 November 2026, featuring two special dining experiences in celebration of Meyyafushi’s first anniversary.

Renowned for his modern-classical culinary philosophy, Chef Wout combines contemporary techniques with Mediterranean influences, placing quality ingredients and their natural flavours at the heart of his cuisine. His distinguished career includes international recognition in France and Belgium, with Le Grand Verre receiving its first Michelin star in 2023.

Chef Wout will personally host an exclusive dinner at Bubble Underwater Restaurant at Meyyafushi Maldives on 2 November 2026, followed by a second dining experience at Raakani Restaurant at Fushifaru Maldives on 5 November 2026. Each dinner will take place on one evening only, featuring a specially curated menu by the chef. Both experiences will be open to in-house guests and outside visitors, including guests staying at the sister resort and those visiting from surrounding islands, subject to availability and advance reservations.

The residency will begin at Meyyafushi, a premium all-inclusive resort featuring 94 private-pool villas and suites and distinctive dining concepts, before continuing at Fushifaru, an award-winning boutique resort celebrated for its authentic Maldivian character, pristine beaches and vibrant marine life.

“Food has a unique way of bringing people together and creating memories that stay with us long after a journey ends. Welcoming Chef Wout Bru to our islands is a wonderful opportunity to celebrate Meyyafushi’s first anniversary while further elevating the culinary experiences we offer across both resorts. We look forward to sharing these special occasions with our guests and creating memorable moments that reflect our commitment to exceptional hospitality,” said Ahmed Siaar, Cluster General Manager of Meyyafushi and Fushifaru Maldives.

Through this collaboration, both resorts aim to elevate their culinary offerings, create memorable guest experiences and celebrate the connection between exceptional gastronomy and the natural beauty of the Maldives.

Meyyafushi Maldives:

Dinner date: 2 November 2026
Venue: Bubble Underwater Restaurant
Price: USD 450 net per person – 4 course wine pairing dinner
Reservations: reservations@meyyafushi.com
Website: www.meyyafushi.com

Fushifaru Maldives:

Dinner date: 5 November 2026
Venue: Raakani Restaurant
Price: USD 300++ per person – 5 course Michelin dinner
Reservations: reservations@fushifaru.com
Website: www.fushifaru.com

Both dinners are available to in-house guests and outside visitors, including guests staying at the sister resort and those visiting from surrounding islands, subject to availability and advance reservations.

Action

Adaaran Select Hudhuranfushi brings together local, international female surfers

Published

23 hours ago

October 18, 2026

m@ldives

Adaaran Select Hudhuranfushi with its renowned wave Lohis, recently welcomed an all-female surf group for a week of surfing, wellness, and meaningful connections. Beyond experiencing the Maldives’ world-class waves, the visit created an opportunity to bring together international surfers from Surferelle, a women-focused female surf KOL, and members of Surf Her Story, a local female surfing community, for an inspiring exchange of experiences, perspectives, and stories.

Connecting Women Through Surfing

The gathering brought together women from different countries, cultures, and backgrounds, united by their shared passion for the ocean.

Through conversations and shared experiences, participants exchanged perspectives on surfing, personal growth, confidence, and the challenges women face in pursuing their passions.

What began as a meeting of surfers became a reminder that, despite cultural differences, women often share similar aspirations and challenges. The exchange offered an opportunity for mutual encouragement, new friendships, and inspiration that extended well beyond the water.

Surf Her Story: Empowering the Next Generation

Founded by former professional surfer Maju Freitas, with the support of local surfers Aya Naseem and Rishtha Suja, Surf Her Story is a community-driven initiative dedicated to introducing more girls across the Maldives to surfing.

The idea began four years ago when Freitas first visited the Maldives and noticed something missing from its incredible surf scene.

“I remember thinking, ‘Oh my God! This place has amazing waves… but WHERE ARE ALL THE GIRLS?'” she recalls.

Determined to make a difference, Maju created Surf Her Story to help more Maldivian girls discover the physical, mental, and social benefits of surfing.

Beyond developing surfing skills, the initiative aims to build confidence, encourage self-expression, and create a supportive sisterhood where girls can grow together, both in and out of the ocean.

“My biggest dream is for every girl to have the opportunity to experience the freedom, happiness, and empowerment that surfing has given me throughout my life,” says Maju. “I truly believe surfing can change lives, and through Surf Her Story, I hope to share that feeling with as many girls as possible.”

Giving Back to the Community That Makes Surfing Possible

As a surf destination, the Maldives offers extraordinary experiences to visitors from around the world. Lohis Maldives believes that the benefits of surf tourism should also extend to the local communities that call these islands home.

Welcoming Surf Her Story was a small but meaningful step toward that vision: creating space for local female surfers to connect with an international community, share their voices, and gain encouragement from women with different life experiences.

By facilitating these connections, the resort hopes to contribute to a future where more Maldivian girls feel welcome in the water, confident in their abilities, and supported in pursuing their ambitions.

At Lohis, the true value of surf travel lies not only in the waves we enjoy, but also in the positive connections and opportunities we leave behind.

The resort looks forward to continuing to support community engagement, celebrate women in surfing, and create experiences that bring lasting value to both visitors and the local community.