News

Marriott and Starwood sign amended merger agreement

Published

8 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

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Violinist Petar Markoski to host unforgettable musical performances tour in Sun Siyam Resorts

Published

8 hours ago

April 25, 2024

m@ldives

Established musician Petar Markoski, a talented violinist, singer, and songwriter from Ohrid, Macedonia, is set to perform at Sun Siyam Resorts in the Maldives from May 1st to May 15th, 2024, showcasing his captivating musical talents at Siyam World, Sun Siyam Iru Fushi, and Sun Siyam Olhuveli.

During his musical residency at Sun Siyam Resorts, Petar Markoski will mesmerize guests with his soulful performances, enriching the artistic ambiance and elevating the cultural experience. This unique musical immersion promises to captivate discerning travelers and aficionados of fine music. Additionally, Sun Siyam Olhuveli will host a special cocktail party alongside Markoski’s performance, celebrating World Cocktail Day on May 13th in style.

Petar Markoski’s musical talent has been evident since his early years, starting his career at the young age of 9. He has received praise, awards, and widespread recognition for his virtuosity on the violin, as well as his skills as a singer and songwriter.

His repertoire covers a wide range of genres, from classical masterpieces to contemporary pop and rock hits. Markoski’s ability to effortlessly transition between musical styles has endeared him to audiences of all ages, from fans of legendary artists like Frank Sinatra, Dean Martin, and Elvis Presley, to admirers of modern icons such as Adele, Ed Sheeran, and Bruno Mars.

“I am thrilled to have the opportunity to share my music with the discerning guests of Sun Siyam Resorts in the Maldives,” said Petar Markoski. “Music has the power to transcend boundaries and bring people from all walks of life together, and I am eager to create unforgettable moments through the universal language of melody.”

News

Avani+ Fares Maldives Resort appoints Thaaif Ahmed appointed as Director of Sales & Marketing

Published

1 day ago

April 24, 2024

Maldives Insider

Avani+ Fares Maldives Resort, part of Minor Hotels, has announced the appointment of Thaaif Ahmed as the Director of Sales & Marketing, effective 1 May 2024.

Thaaif brings nearly two decades of experience in the hospitality industry, with a significant portfolio of roles within Minor Hotels. His career includes serving as the Director of Sales at NH Collection Maldives, where he played a pivotal role in driving revenue growth and fostering strategic partnerships.

Throughout his tenure, Thaaif has demonstrated exceptional leadership capabilities and a profound understanding of the industry landscape. His strategic prowess and collaborative approach have consistently delivered outstanding results, making him a respected figure within the organisation.

In his previous capacity as Cluster Director of Sales, overseeing Anantara Dhigu Resort Maldives, Anantara Veli Resort Maldives, and Naladhu Private Island, Thaaif contributed to the success and growth of the brand.

As he assumes the role of Director of Sales & Marketing at Avani+ Fares Maldives Resort, Thaaif is poised to leverage his wealth of experience and expertise to drive brand positioning, enhance revenue streams, and elevate the overall guest experience. His appointment underscores the resort’s commitment to excellence and innovation in the hospitality sector.

Please join Stuart De San Nicolas, Cluster General Manager of Anantara Kihavah, Avani+ Fares and NH Collection Havodda plus Riaan Drever, General Manager of Fares in congratulating Thaaif on his well-deserved promotion. We also express our gratitude to Paul Counihan, for his support during our pre-opening and opening stages. Paul will transition to focus on Anantara Kihavah, our sister property in Baa Atoll, while Thaaif assumes leadership at Avani+ Fares Maldives.

Set on the natural tropical island of Fares and surrounded by the UNESCO Biosphere Reserve’s deep blue hues, the resort offers an abundance of aquatic adventures as well as pristine sandy beaches for pure relaxation. With 176 stylish villas, pavilions, and studios, Avani+ Fares welcomes couples and honeymooners, as well as families and groups, with a focus on multi-room accommodation.

News

Fortifying Angsana Velavaru’s dedication to sustainability with Earth Day celebration

Published

1 day ago

April 24, 2024

m@ldives

Angsana Velavaru, an all-inclusive premium resort nestled in South Nilandhe Atoll and a leading advocate for environmental stewardship in the Maldives, celebrated Earth Day on 22 April with a series of impactful initiatives. With an emphasis on its dedication to sustainability, the resort hosted a range of activities aimed at raising awareness and promoting responsible practices. Earth Day is an annual event demonstrating support for environmental protection, coordinated globally by EARTHDAY.ORG, which began in 1970.

The celebration commenced with the launch of “SustainLinen: Apron Collection” at Kaani Restaurant’s interactive breakfast pancake station. The linens, once adorning the resort’s villas and providing guests with comfort, were repurposed instead of being discarded – symbolising a remarkable transformation.

In July 2023, the Green Sustainability Team, comprising dedicated associates from various resort departments and sharing a vision of a greener, more sustainable future, introduced the “SustainLinen Tote Bag with Purpose” to resort associates. This initiative aimed to offer an eco-friendly alternative to disposable plastic bags, thereby reducing plastic waste. Since September 2023, the team has extended this initiative to neighboring communities and in-house guests. To mark Earth Day, skilled tailors at the resort crafted 30 tote bags from discarded beach umbrellas for distribution to guests.

A tree planting session was held at 10:00 am led by the Angsana Velavaru’s Executive Assistant Manager – Food and Beverage Neil Firman with a total of 77 trees planted, followed by a reef cleanup from 11:00 am to 12:15 pm. During the cleanup, 14 participants removed 25 Pin Cushion Sea Stars, safeguarding the precious corals that adorn the underwater realm.

Meanwhile, kids engaged in bracelet making workshops at the Ranger’s Club from 11:00 am to 12:00 pm, using repurposed fishing nets to create trendy accessories. This hands-on activity not only fostered creativity but also highlighted the importance of recycling and reducing marine pollution. Furthermore, families joined in an island cleanup effort from 4:00 pm to 4:30 pm. Together, participants worked to ensure the island remained a sanctuary for both guests and natural ecosystem.

“We are thrilled to lead the Earth Day celebration with a renewed commitment to sustainability,” said Abdul Nasir Ibrahim, Executive Housekeeper, and Sustainability Champion at Angsana Velavaru. “Through initiatives such as repurposing fishing nets for trendy bracelets and engaging in eco-friendly activities, we aim to inspire positive change and foster a deeper connection to our environment.”

“At Angsana Velavaru, we invite guests, associates, and the local community to embrace sustainability and contribute to a more resilient and harmonious future,” added Muhamad Izuan, Marine Environment Officer. “We believe in the power of small ideas and collaborative efforts. There is always room for innovation and a deep sense of responsibility to nature and the community. Therefore, let us make every day Earth Day.”

Part of Banyan Group, a renowned international hospitality company committed to a greater purpose, Angsana Velavaru, an EarthCheck Gold-certified for eight years, presents a blissful tropical retreat. Boasting 79 secluded beachfront villas and a collection of 34 InOcean Villas, it offers a vibrant and immersive experience amidst the azure waters.

Angsana Velavaru walks the talk with a series of best practices that contribute to its sustainable journey: