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.
Manhattan Grand Hotel is set to redefine the Meetings, Incentives, Conferences and Exhibitions (MICE) industry with the launch of one of the largest integrated MICE and event destinations in the Greater Malé Area. Combining premium accommodation, versatile event venues, multiple dining outlets and comprehensive event services under one roof, the hotel is now accepting advance bookings for conferences, exhibitions, corporate events, weddings and social celebrations from September 2026 onwards.
Purpose-built to meet the growing demand for world-class event facilities, the hotel offers three major event halls Mā Ashi (700 sqm), Maalan (400 sqm) and Holhuashi (390 sqm) supported by the Ras Ain Meeting & Conference Facilities, comprising Ras Giri Conference Room, Ras Faruma Training Room, Ras Vani Meeting Room and Ras Pod working spaces. Together with 162 contemporary guest rooms, four restaurants and dedicated event services, Manhattan Grand Hotel provides a complete destination for events of every scale.
Designed to cater for conferences, exhibitions, Government and State-Owned Enterprise (SOE) meetings, Annual General Meetings (AGMs), corporate conventions, product launches, seminars, training programmes, weddings, gala dinners and private celebrations, Manhattan Grand Hotel can comfortably host three major events simultaneously. With separate guest flows, dedicated banquet operations and professional event management teams, each event can operate independently without disruption to others, setting a new benchmark for MICE facilities in the Greater Malé Area.
Complementing the event facilities are four distinctive dining outlets Hen Na, Manhattan Fish Market, Café Barbera and Vilu offering organisers a variety of dining experiences for delegates, networking sessions, VIP functions and private events. The hotel also features professional audiovisual technology, LED displays, high-speed Wi-Fi, conference facilities, integrated catering services and dedicated event management support, delivering a seamless experience from planning through execution.
The Chief Operating Officer of Manhattan Grand Hotel said: “Our vision is to redefine how conferences, exhibitions and major events are hosted in the Maldives. Manhattan Grand Hotel has been purpose-built to deliver the scale, flexibility and professional services required by government institutions, state-owned enterprises, corporations and international event organisers. By bringing together one of the largest integrated MICE facilities in the Greater Malé Area with premium accommodation, dining and hospitality, we are changing the landscape of MICE events in the Greater Malé Area and setting a new benchmark for the industry. We look forward to welcoming our first events from September onwards.”
Strategically located in Hulhumalé, just minutes from Velana International Airport, Manhattan Grand Hotel is positioned to become the preferred venue for government institutions, SOEs, corporate organisations, international associations, event organisers and wedding planners seeking a world-class venue in the Maldives.
Luxury is often found in life’s quietest moments, the gentle sound of waves, the warmth of the tropical breeze, and now, the comforting aroma of a perfectly brewed cup of tea. Embracing this philosophy, SO/ Maldives has introduced an exclusive collaboration with Dilmah Tea, bringing one of the world’s most celebrated premium tea experiences to the island.
More than simply serving exceptional tea, the partnership reimagines how guests connect with the destination. Every carefully selected blend becomes an invitation to slow down, reconnect with nature, and embrace the effortless sophistication that defines the SO/ Maldives experience. Whether enjoyed overlooking the turquoise lagoon, paired with an elegant afternoon indulgence, or savoured during moments of wellness and relaxation, Dilmah Tea becomes another expression of the resort’s signature Island Couture lifestyle.
Rooted in authenticity and sustainability, Dilmah’s philosophy of handpicked, single-origin Ceylon tea perfectly complements SO/ Maldives’ commitment to meaningful luxury experiences. Together, the two iconic brands celebrate craftsmanship, conscious living, and unforgettable moments shared in one of the world’s most breathtaking island destinations.
To commemorate the collaboration, SO/ Maldives will host an exclusive Dilmah Tea Launch Experience on 04th August 2026 at the vibrant Lazuli Beach Club, inviting resort guests and distinguished partners to discover the art of tea through an immersive evening of flavour, storytelling, and entertainment.
Guests will begin the experience with a signature welcome before exploring an interactive Dilmah Tea Experience featuring a curated collection of premium tea varieties. Guided by the Dilmah team, guests will discover the heritage behind each blend, learn the art of tea appreciation, and experience thoughtfully curated snack pairings designed to enhance every flavour profile.
As the sun begins to set over the Indian Ocean, the evening will seamlessly transition into a celebration of SO/ Maldives’ unmistakable style. A spectacular Flying Dress showcase will capture the vibrant colours and elegance of island couture against the Maldivian horizon, followed by a captivating fire performance that lights up the beach, creating an unforgettable finale beneath the stars.
The introduction of Dilmah Tea further strengthens SO/ Maldives’ commitment to offering world-class culinary and lifestyle experiences that blend international excellence with the serenity of island living. Guests can now discover an elevated tea programme across selected dining venues and experiences, reinforcing the resort’s promise to deliver exceptional moments from sunrise to sunset.
From tranquil mornings overlooking crystal-clear lagoons to golden-hour reflections by the beach, every cup of Dilmah Tea invites guests to pause, breathe, and savour the beauty of the present, transforming an everyday ritual into an extraordinary island experience.
For more information or to book your perfect getaway, please visit so-maldives.com or contact so.maldives.reservations@so-hotels.com or call +960 664-9100.
.Here Baa Atoll has been awarded the prestigious Forbes Travel Guide VERIFIED™ Responsible Hospitality recognition, affirming the resort’s commitment to responsible luxury and its dedication to delivering exceptional guest experiences while embracing sustainable and ethical hospitality practices.
Developed by Forbes Travel Guide, the global authority on luxury hospitality, the VERIFIED™ Responsible Hospitality programme recognises hotels and resorts that demonstrate a comprehensive commitment to environmental stewardship, community engagement, employee wellbeing and responsible operational practices. The recognition is awarded following an independent assessment of more than 100 standards designed specifically for the luxury hospitality sector.
Located within the UNESCO Biosphere Reserve of Baa Atoll, .Here Baa Atoll has been conceived around the philosophy of The Art of Duality—bringing together immersive luxury and a profound respect for the natural world. Across its two private islands connected by a pristine sandbank, the resort integrates thoughtful design, personalised experiences and responsible practices that aim to preserve the destination for generations to come.
The recognition reflects the resort’s ongoing efforts to minimise its environmental impact while creating meaningful experiences that connect guests with the unique marine ecosystem and cultural heritage of the Maldives. Through responsible resource management, conservation initiatives, local partnerships and a continued focus on guest and team wellbeing, .Here Baa Atoll strives to demonstrate that exceptional luxury and responsible hospitality can exist in harmony.
“This recognition represents an important milestone for .Here Baa Atoll and reflects the collective commitment of our team to creating experiences that are both meaningful and mindful,” said Elina Adiyan, Resident Manager of .Here Baa Atoll. “Responsible hospitality is embedded in every aspect of the guest journey, from the way we design experiences to how we care for our people, our community and the remarkable environment that surrounds us. We are honoured to be recognised by Forbes Travel Guide for this commitment.”
As global travellers increasingly seek destinations that align with their values, the Forbes Travel Guide VERIFIED™ Responsible Hospitality recognition reinforces .Here Baa Atoll’s position among the world’s leading ultra-luxury resorts, offering guests the confidence that their stay supports a property committed to responsible operations without compromising on service, comfort or exclusivity.
The achievement marks another significant milestone for the resort as it continues to establish itself as one of the Maldives’ most distinctive luxury destinations, where contemporary design, personalised hospitality and a deep respect for nature come together to create extraordinary experiences.
To learn more about .Here Baa Atoll, visit www.here-maldives.com.
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