5.2 Unique features of the acquisition
Even if not yet meeting the huge amount offered by the Chinese competitor, Starwood accepted the new bid submitted by Marriott, evidently finding it profitable enough: for sure, a critical role in the decision is played by the significant long term value that such acquisition can generate. In other words, the potential synergies with Marriott prevailed and persuaded Starwood against the new bidder, as already happened with Hyatt, who also submitted a sweeter bid than Marriott, but was discarded the same. Indeed, Starwood’s aim is to enlarge in order to compensate the weaknesses that were encumbering her performance, especially on limited service markets, where Marriott can fairly claim expertise and ability, and where Hyatt instead suffered problems similar to those of Starwood.
5.3 Consequences on market share and international presence
As observed in the industry analysis, Marriott and Starwood deal would impact upon the hospitality sector market share: even if it will not create the world largest hotel company in terms of number of property, since resulting after Wyndham Hotel Group with 6,000 property. However, in terms of number of rooms Marriott and Starwood represent the number one, with 1.1 million rooms worldwide.
Concering the international presence, Starwood …show more content…
Furthermore, thanks to asset sales after the transaction, either to continue the asset light strategy of Starwood and to eliminate duplications in the asset structure of the new entity, after-tax proceeds are expected for a value between $1.5 and $2 billion. Other positive returns shall derive from increased efficiencies, especially in activities as reservations, procurements and shared
Even if not yet meeting the huge amount offered by the Chinese competitor, Starwood accepted the new bid submitted by Marriott, evidently finding it profitable enough: for sure, a critical role in the decision is played by the significant long term value that such acquisition can generate. In other words, the potential synergies with Marriott prevailed and persuaded Starwood against the new bidder, as already happened with Hyatt, who also submitted a sweeter bid than Marriott, but was discarded the same. Indeed, Starwood’s aim is to enlarge in order to compensate the weaknesses that were encumbering her performance, especially on limited service markets, where Marriott can fairly claim expertise and ability, and where Hyatt instead suffered problems similar to those of Starwood.
5.3 Consequences on market share and international presence
As observed in the industry analysis, Marriott and Starwood deal would impact upon the hospitality sector market share: even if it will not create the world largest hotel company in terms of number of property, since resulting after Wyndham Hotel Group with 6,000 property. However, in terms of number of rooms Marriott and Starwood represent the number one, with 1.1 million rooms worldwide.
Concering the international presence, Starwood …show more content…
Furthermore, thanks to asset sales after the transaction, either to continue the asset light strategy of Starwood and to eliminate duplications in the asset structure of the new entity, after-tax proceeds are expected for a value between $1.5 and $2 billion. Other positive returns shall derive from increased efficiencies, especially in activities as reservations, procurements and shared