Travelore News: Marriott And Starwood Hotels Are Now One

Marriott International, Inc. has completed its acquisition of Starwood Hotels & Resorts Worldwide, Inc., creating the world's largest and best hotel company. Marriott now offers the most comprehensive portfolio of brands including leading lifestyle brands, a significant global footprint, and leadership in the luxury and select-service tiers as well as the convention and resort segment.

Beginning today, Marriott will match member status across Marriott Rewards – which includes The Ritz-Carlton Rewards – and Starwood Preferred Guest (SPG), enabling members to transfer points between the programs for travel and exclusive experiences when they link their accounts later today.

"Throughout our nearly 90-year history we have never stopped searching for innovative ways to serve our guests. With the addition of Starwood's strong brands, great properties, and talented people, we have dramatically expanded our ability to provide the best experiences to our customers. We also welcome the tremendous responsibility as the world's largest hotel company to be a good global steward, providing new opportunities for our associates and building the economic strength of the communities we call home," said J.W. Marriott, Jr., Executive Chairman and Chairman of the Board of Marriott International.

"We believe that Marriott now has the world's best portfolio of hotel brands, the most comprehensive global footprint, and the most extensive loyalty programs, providing an unparalleled guest experience. Combining Starwood's brands with ours better enables Marriott to reach our goal of having the right brand in the right place to serve our loyal guests and welcome new ones," said Arne Sorenson, President and Chief Executive Officer of Marriott International. "We can now provide a better range of choices for our guests, more opportunities for our associates, and greater financial benefits for our owners, franchisees, and shareholders."

The new company will operate or franchise more than 5,700 properties and 1.1 million rooms, representing 30 leading brands from the moderate-tier to luxury in over 110 countries. With the completion of this acquisition, Marriott's distribution has more than doubled in Asia and the Middle East & Africa combined.

Best-in-Class Loyalty Programs

Marriott Rewards – which includes the Ritz-Carlton Rewards – and SPG are the most recognized and awarded loyalty programs in hospitality. Together, these programs will offer members more benefits when they link their accounts, as well as new destinations such as Aruba, Tuscany's Serchio Valley and Kruger National Park in South Africa for SPG members and the Maldives, Bora Bora and Santorini, Greece for Marriott Rewards and The Ritz-Carlton Rewards members.

"Marriott will draw upon the very best each program offers and we can't wait to show the loyal members of these programs the power and benefits of Marriott and Starwood coming together," said Stephanie Linnartz, Executive Vice President and Global Chief Commercial Officer.

Marriott will launch a microsite later today, www.members.marriott.com, for all members of the combined company's loyalty programs to learn more about the reciprocal benefits now available and to link accounts.

Transaction Benefits

Marriott's acquisition of Starwood enables the combined company to expand the scope of its distribution and portfolio while deploying its larger scale to realize cost efficiencies in its corporate and property operations. As previously stated, Marriott is confident the company can achieve $250 million in annual corporate cost synergies. Additional synergies at the property level should come in the form of leveraging scale in operations and sharing best practices. Combined sales expertise and improved account coverage are expected to provide both enhanced efficiencies and increased revenue opportunities for managed and franchised properties.

"These enhanced efficiencies and revenue opportunities should drive improved property-level profitability as well as greater owner and franchisee preference for the combined company's brands, which will encourage new hotel development," Sorenson said. "As new travel destinations emerge, Marriott can be counted on to be there."

One-time transaction costs for the merger are expected to total approximately $140 million. Marriott intends to take the steps necessary to cause Starwood's outstanding public debt to be pari passu with the outstanding public debt of Marriott International. Marriott remains committed to maintaining an investment grade credit rating and to continue managing the balance sheet prudently after the merger.

New Board Members and Shares Listing

Effective today, Marriott's Board of Directors has increased from 11 to 14 members, with the addition of Bruce Duncan, Chairman, President and CEO of First Industrial Realty Trust, Inc., Eric Hippeau, Partner, Lerer Hippeau Ventures; and Aylwin Lewis, Chairman and CEO of Potbelly Corporation. Messrs. Hippeau and Lewis are also former Starwood board members.

Before market open today, Starwood's shares will cease trading on the New York Stock Exchange. As previously announced, 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.

Arne Sorenson remains President and Chief Executive Officer of Marriott International, and Marriott's headquarters continues to be located in Bethesda, Maryland.

Lazard and Citigroup were financial advisors to Starwood Hotels & Resorts Worldwide and Deutsche Bank Securities and Goldman Sachs were the financial advisors to Marriott International. Cravath, Swaine & Moore served as legal counsel to Starwood Hotels & Resorts Worldwide and Gibson, Dunn & Crutcher served as legal counsel to Marriott 

Sheraton Grand Debuts In Austria

SALZBURG, Austria - Sheraton Hotels & Resorts today announced the designation of Sheraton Salzburg Hotel as a Sheraton Grand, welcoming it to the brand’s premier tier of hotels recognized for their enticing destinations, distinguished designs, and excellence in service and guest experiences. Having just completed a comprehensive, five year top-to-bottom renovation, the Sheraton Grand Salzburg joins a portfolio of 34 other Sheraton Grand properties worldwide, with destinations ranging from Istanbul and Dubai, to Beijing and beyond. Sheraton Grand is one of many initiatives currently underway as part of Starwood’s comprehensive plan to solidify Sheraton as a leading global hotel brand of choice, everywhere.

“As Starwood’s largest and most global brand, we remain focused on our work to keep Sheraton in the spotlight through the continued growth and halo effect of Sheraton Grand,” said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East. “With a refreshed and enhanced aesthetic thanks to its 10 million euro renovation, Sheraton Grand Salzburg is a best-in-class example of the brand’s new elevated approach to design, making it an ideal candidate for the brand’s premier tier.”

The refreshed Sheraton Grand Salzburg combines contemporary touches with traditional Salzburg design. The hotel has added 29 new rooms and suites, and carefully restored the entire sixth floor with tech-enhanced furnishings and premium materials, such as oiled oak floors and bespoke wooden furniture from Tyrol. The minimalistic design concept of the rooms is harmoniously complemented by small details, such as the selection of black and white pictures depicting historical Salzburg scenes. The Sheraton Grand Salzburg also boasts an elevated dining experience with the addition of a show kitchen to the Mirabell Restaurant, providing guests a first-hand insight into culinary creations.

Beyond the enhancements of its renovation, the Sheraton Grand Salzburg features 166 spacious and elegant rooms, including six Sky Suites and a Penthouse Suite, all with city or park views of the famous Mirabell Gardens and Salzburg’s mountain scenery. Sheraton Club rooms and suites offer exclusive access to the Sheraton® Club Lounge, a private space where guests can enjoy complimentary breakfast, drinks and snacks during the day. Piano Bar is a perfect spot for sociable hours, where guests can enjoy creative cocktails as well as imaginative menu additions through Paired, the Sheraton brand’s food and beverage programme that offers small plates and eclectic bar snacks served alongside suggested premium wines and local craft beers.

“We are proud to receive the Sheraton Grand designation, enabling Sheraton Grand Salzburg to join the existing roster of esteemed hotels and resorts worldwide,” said Herbert Mosbruck, General Manager of Sheraton Grand Salzburg. “Our team and ownership have worked diligently to ensure the hotel goes above and beyond in design and service, and it is thanks to the team’s undying support in providing unique experience to our guests every day that we become a Sheraton Grand.”

A Clear Vision

Sheraton Grand is just one of many initiatives currently underway for Sheraton 2020, a comprehensive 10-point plan revealed in June 2015 designed to put Sheraton Hotels and Resorts firmly back into the global spotlight. A nod to the plan’s clear five-year vision, Sheraton 2020 also includes the launch of a new elevated food and beverage lobby program, Paired; continuous innovation of the Sheraton guest experience; an unwavering commitment to service excellence; the implementation of revenue and profit-driving initiatives to benefit owners and developers; and a goal of opening more than 150 new Sheraton hotels worldwide by 2020.

Airbnb Opens Cuba Listings To The World

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Starwood Hotels and Resorts Chief of Latin American Operations Jorge Giannattasio speaks to... Read more

HAVANA (AP) — Online lodging service Airbnb is allowing travelers from around the world to book stays in private homes in Cuba after the San Francisco-based company received a special authorization from the Obama administration, Airbnb announced Sunday.

Airbnb was the first major American company to enter Cuba after Presidents Barack Obama and Raul Castro declared detente on Dec. 17, 2014. The service handles online listing, booking and payments for people looking to stay in private homes instead of hotels. Cuba has become its fastest-growing market, with about 4,000 homes added over the last year.

Airbnb had only been allowed to let U.S. travelers use its services in Cuba under a relatively limited Obama administration exception to the half-century old US trade embargo on the island. The expansion of that license gives Airbnb the ability to become a one-stop shop for travelers seeking lodging in private homes, which have seen a flood of demand from travelers seeking an alternative to state-run hotels.

Airbnb's new authorization was announced on the morning of an historic three-day trip by Obama to Cuba and a day after Starwood Hotels announced that it had signed a deal to run three Cuban hotels, becoming the first U.S. hotel company in Cuba since Fidel Castro took power in 1959 and took over the island's hotels. Airbnb said world travelers could begin booking in Cuba in April 2, the anniversary of the country's start of operations on the island.

All hotels in Cuba are now owned by government agencies and many are known for poor service and decrepit infrastructure. Foreign hotel chains operate some of the island's larger and more luxurious hotels, which are running at full capacity thanks to a post-detente boom in tourism that saw visitor numbers surge nearly 20 percent last year.

One of the first openings in Cuba's centrally planned economy came when the government allowed families to rent rooms in their homes for a few dollars a night, starting in the 1990s. That has become a full-blown private hospitality industry, with many Cubans using capital from relatives abroad and even foreign investors to transform crumbling homes into the equivalents of small boutique hotels.

Many websites allow foreigners to book Cuban private homes, known as "casas particulares," but none has emerged as a dominant player. Many travelers still find it hard to guarantee bookings and make electronic or credit card payments. Airbnb is promoting its service as a solution to those problems in Cuba.

By MICHAEL WEISSENSTEIN

Starwood To Renovate And Run 3 Cuban Hotels

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Starwood Hotels and Resorts Chief of Latin American Operations Jorge Giannattasio speaks to... Read more

HAVANA (AP) — Starwood signed a deal on Saturday to renovate and run three Cuban hotels, returning U.S. chains to the island more than 50 years after American hotels were taken over by Fidel Castro's socialist revolution.

All Cuban hotels are state-owned so the deal puts a major U.S. corporation directly in business with the Communist government under a special U.S. license that pushes Washington's legal dismantling of the Cuban trade embargo further than ever before. In a once-unimaginable arrangement, a hotel owned by the tourism arm of the Cuban military will become a Sheraton Four Points.

The deal comes on the eve of President Barack Obama's historic visit to Cuba, which will open a new era between the former Cold War foes that has American travelers and businesses eagerly eyeing opportunities on the island nation 90 miles (145 kilometers) south of Florida.

Starwood's chief of Latin America operations, Jorge Giannattasio, said the company will invest millions to renovate and rebrand the Quinta Avenida, Santa Isabel and Inglaterra hotels, train and hire new staff and reopen the hotels by the end of the year. The Quinta Avenida is owned by Gaviota, a military-run tourism conglomerate. The Santa Isabel and Inglaterra, which are run by other state agencies, will be operated as part of Starwood's Luxury Collection brand.

It's unclear, however, how long Starwood can be called an American company. On Friday, Starwood called off a $12.2 billion buyout agreement with Marriott in favor of an offer from a group of investors led by the Chinese insurance company Anbang.

Cuban hotels are notorious for their ramshackle furnishings and poor service. Giannattasio said the Cuban Starwood hotels would be refitted with everything from new mattress to improved kitchen equipment and safety measures and managed by teams of expatriate Starwood employees.

Cuban law prevents widespread direct hiring of Cuban workers by foreign firms. International companies complain that their inability to directly hire Cuban employees, and if necessary demote or fire underperforming staff, hinders their ability to provide satisfactory customer service.

Giannattasio said he was confident that Starwood would have enough flexibility and control to maintain the company's standards in Cuba, although he declined to comment on details of the firm's arrangement with the Cuban government. Starwood will receive a fee for its branding and management services.

The number of visitors to Cuba surged nearly 20 percent last year, with nearly 80 percent more Americans flying to the island. The surge has overwhelmed Cuba's decrepit tourism infrastructure and left hotels above capacity.

Numbers are expected to rise even more sharply this year with the start of as many as 110 commercial flights a day from the United States, one of dozens of moves the U.S. administration has made to punch holes in the trade embargo as part of a broader normalization of relations with Cuba since Obama and Raul Castro declared detente on Dec. 17, 2014.

On Tuesday, the Obama administration removed the last meaningful restrictions on travel to Cuba, announcing that it would allow individuals to visit the island for "people to people" educational trips. While the ban on U.S. tourism technically remains in place, it becomes an honor system that is essentially unenforceable.

Americans will have to keep records for five years about what they did in Cuba, but won't have to submit them unless asked. The Obama administration previously loosened requirements by allowing organized trips without advance U.S. permission and independent travel for specific purposes like religious activities or sports events.

By MICHAEL WEISSENSTEIN

Starwood Notifies Customers Of Malware Security Breach

Starwood Hotels & Resorts Worldwide, Inc announced today that the point of sale systems of a limited number of its hotels in North America were infected with malware, enabling unauthorized parties to access payment card data of some customers.

Promptly after discovering the issue, Starwood engaged third-party forensic experts to conduct an extensive investigation to determine the facts. Based on the investigation, malware was detected that affected certain restaurants, gift shops and other point of sale systems at the relevant Starwood properties. There is no indication at this time that the Company’s guest reservation or Starwood Preferred Guest membership systems were impacted. The malware was designed to collect certain payment card information, including cardholder name, payment card number, security code and expiration date. There is no evidence that other customer information, such as contact information or PINs, were affected by this issue. The affected hotels have taken steps to secure customer payment card information and the malware no longer presents a threat to customers using payment cards at Starwood hotels.

“Protecting our customers’ information is critically important to Starwood and we take this issue extremely seriously,” said Sergio Rivera, Starwood President, The Americas. “Quickly after we became aware of the possible issue, we took prompt action to determine the facts. We have been working closely with law enforcement authorities and have been coordinating our efforts with the payment card organizations. We want to assure our customers that we have implemented additional security measures to help prevent this type of crime from reoccurring.”

Starwood encourages customers to carefully review and monitor their payment card account statements. If a customer believes his or her payment card may have been affected, the customer should immediately contact their bank or card issuer.

The locations and potential dates of exposure for each affected Starwood property is available at www.starwoodhotels.com/paymentcardsecuritynotice.

Travelore News: Marriott To Acquire Starwood Hotels & Resorts

Deal for $12.2 billion would create the world’s largest hotel company

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CRAIG KARMIN And

 

EZEQUIEL MINAYA, www.wsj.com

Marriott International Inc. said Monday that it has agreed to acquire Starwood Hotels & Resorts Worldwide Inc. in a deal worth $12.2 billion that will create the world’s largest hotel company with more than a million rooms globally.

Under the terms, Marriott will forward 0.92 share along with $2 in cash for each Starwood share, for a total of $11.9 billion in stock and $340 million in cash. The transaction has a value of $72.08 a Starwood share.

Separately, Starwood shareholders will receive an additional $7.80 a share from the spinoff of the Starwood timeshare business and subsequent merger with Interval Leisure Group, which has an estimated value of about $1.3 billion.

The merger creates a portfolio with more than 5,500 hotels with 1.1 million rooms world-wide, the companies said in a news release. Shares of Marriott declined 2.1% in early trading, while Starwood stock fell 7.8% to $69.17.

Reports in October had indicated that Starwood was in merger talks with Hyatt HotelsCorp. Shares of Hyatt rose 2.8% on Monday.

In an interview, Marriott Chief Executive Arne Sorenson said his company first became interested in a deal in the spring when Starwood launched a review of its strategic alternatives, including a possible sale or merger. The interest intensified in the second half of October.

“We became more convinced about the advantages of size by combining the two companies together,” Mr. Sorenson said. “We thought that would bring more options for customers and create a bigger loyalty program. We’d have the ability to compete better, invest in technology and stay front and center with customers.”

The combined company will put together a total of 30 brands, though Mr. Sorenson said he thinks the brands will be kept, with “some marginal places where brands are brought together.”

Referring to the overall integration of the two hotel giants, Mr. Sorenson noted that “we’ll take it a step at a time. This is about pulling together two very strong platforms.” Describing complexity of combining the two companies, he noted that “we’ll have our hands full.”

Mr. Sorenson said the companies haven’t started the process of antitrust review yet, but he said Marriott has about 10% of the hotel rooms in the U.S., while Starwood has about 3% to 4%, so the combined company would be less than 15% of the U.S. hotel supply. He noted that in the U.S., the hotel business is a “highly competitive and dispersed industry.”

Mr. Sorenson said he liked Starwood’s marketing and mix of international properties. He noted they were first in the so-called lifestyle space and that the combined company would be “the strongest in the space.”

Historically, Starwood has been a strong performer in the high-end hotel market. The company has expanded overseas faster than its rivals; roughly half of its more than 350,000 rooms are outside the U.S. Its W brand is known for having a stylish, modern edge.

Marriott said it expects the move to add to its earnings by the second year, excluding transaction costs that are expected to total about $100 to $150 million. The deal is expected to close by the middle of 2016.

The agreement with Interval Leisure supplants Starwood’s earlier-announced plan to spin off the timeshare unit. Timeshare businesses were a onetime booming profit generator for hotel companies that petered out during the recession.

CEO: Starwood Hotels Could Be Sold By Year End

NEW YORK (AP) — Starwood Hotels is nearing a deal to sell the company or merge with another hotel chain, its CEO said on an earnings call Wednesday.

"This has the company's highest attention," interim CEO Adam Aron said. "Our clear goal is to optimize the value for our shareholders."

Back in April, Starwood announced its board was exploring strategic options for the hotel company. At the time, Starwood didn't mention a sale, but analysts considered it a possibility.

Speculation about a potential buyer heated up this week. First the Wall Street Journal reported that three Chinese companies were seeking government approval to place bids for Starwood. Then Wednesday CNBC reported that Hyatt Hotels Corp. was close to purchasing Starwood in a cash and stock deal that would leave Hyatt management in control of the combined company.

Spokeswomen for both hotel chains declined to comment about any possible deal.

Starwood shares have rallied on the reports, gaining 9.1 percent Tuesday and rising 6.6 percent to $79.74 in afternoon trading Wednesday.

"Our progress is active and nearing conclusion," Aron told investors Wednesday afternoon. He wouldn't comment on any specific deal, but said: "I would be surprised if we don't have answers to these questions by the end of this calendar year."

Starwood Hotels & Resorts Worldwide Inc., based in Stamford, Connecticut, has a market capitalization of $13.6 billion; Hyatt's is $7.1 billion. Starwood, which includes the Westin, Sheraton, W and St. Regis brands, has 1,271 hotels with a combined 362,623 rooms. Hyatt, has 618 hotels with a combined 160,205 rooms.

A merger of the two would help the new company better compete with hotel giants Marriott International, Hilton Worldwide and Intercontinental Hotels Group, all which have more than 4,000 properties and roughly 700,000 rooms each.

By SCOTT MAYEROWITZ 

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Starwood Preferred Guest And Sheraton Announce Exclusive Partnership with Major League Baseball

Partnership Benefits include Complimentary MLB.TV Access for Sheraton Guests, Booking on MLB.com, In-Room MLB Network and Access to One-of-a-Kind MLB Moments from Starwood Preferred Guest^®

Sheraton Celebrates Partnership with Special Screenings of 2015 MLB Postseason Games

Sheraton Hotels & Resorts and Starwood Preferred Guest^® (SPG^®) today announced an exclusive new partnership with Major League Baseball^® (MLB^®), designating Sheraton as the “Official Hotel of Major League Baseball” and SPG as the “Official Hotel Loyalty Program of Major League Baseball.”  The new partnership brings Sheraton guests, Starwood Preferred Guest® (SPG®) members and avid baseball fans closer to the action by providing them access to must-see games while on the road, as well as the opportunity to bid on once-in-a-lifetime experiences.  Sheraton will celebrate the partnership this fall by hosting special screenings of MLB Postseason games at select hotels across North America, leading off tonight with a star-studded event at the Sheraton New York Times Square. In addition, starting today, SPG members have the opportunity to redeem Starpoints® for pairs of tickets to each World Series game at spg.com/moments.

“We are thrilled to become the ‘Official Hotel of Major League Baseball,’ a sport we know is a true passion for a lot of our Sheraton guests,” said Dave Marr, Global Brand Leader for Sheraton Hotels & Resorts. “The partnership provides Starwood with the ability to connect with the MLB fan base, a large and highly engaged audience that will help support the brand’s repositioning and further drive loyalty.”

Starting with the 2016 MLB season, Sheraton will take guests and elite SPG members out to the ballgame by offering:

·         Complimentary access to MLB.TV, the only streaming service that enables fans to watch their favorite team live outside their home market;

·         Availability of MLB Network, the Emmy Award-winning 24/7 cable television network dedicated to baseball, as an in-room entertainment channel in the U.S.;

·         Custom Starwood booking widgets located on MLB.com and participating teams’ Schedule pages, providing fans a seamless process in booking travel plans to see their favorite teams on the road;

·         Enticing packages, promotions and sweepstakes that will make baseball dreams come true by sending guests off to see their favorite games in person or offering up chances to win exciting MLB prizes.

"This new partnership will provide MLB content and unique experiences to Sheraton guests and SPG members, offering baseball fans an attractive benefit when making a hotel choice," said Noah Garden, MLB Executive Vice President, Business.  "In addition, MLB will deliver enormous visibility to millions of passionate baseball fans, giving Sheraton an important platform to showcase its new brand positioning." 

SPG members can also take advantage of the new partnership beyond the World Series with exclusive access to once-in-a-lifetime baseball experiences throughout the entire 2016 season through SPG Moments. Starting with Spring Training, members can look forward to MLB experiences that include meet and greets, batting practice with players, premium game tickets inclusive of the All-Star Game and World Series, and much more. SPG members can access all of this at spg.com/moments.

“We know many of our members are loyal baseball fans and appreciate unrivaled access to amazing seats and exclusive experiences,” Mark Vondrasek, Senior Vice President of Commercial Services for Starwood Hotels & Resorts. “Through this new partnership with MLB, we can fuel our members’ passions with unforgettable moments tapping into the best that baseball has to offer.”

Four-time MLB All-Star José Reyes, SNY and WPIX broadcaster Keith Hernandez, a five-time MLB All-Star, and acclaimed chef Andrew Carmellini of Sausage Boss at MSG, will join fans to celebrate the new partnership at the Sheraton New York Times Square with a special screening of Game 3 of the American League Championship Series.  During the event, guests can take in the game while enjoying a ballpark-inspired version of the Sheraton brand’s new Paired signature lobby bar menu, served alongside premium wine and craft beer.  Reyes and Chef Carmellini will also face off in a live stadium-inspired culinary competition to see who can create the ultimate ballpark hotdog using unexpected toppings and sauces. Participating Sheraton Hotels will continue the party nationwide with their own Postseason screenings through the Fall Classic.  Guests can root for their favorite teams while enjoying savory and satisfying Paired options created especially for MLB game nights, such as Chorizo Chili Con Carne Potato Skins paired with White Zinfandel, Blue Crab Hushpuppies with Sauvignon Blanc, Pastrami Stack Pretzel sliders with Cabernet Sauvignon, and a specialty hot dog topped with beerkraut, apple & mustard, created especially for Sheraton by Chef Carmellini.