SUNBIZ

Denarau, Momi Links In Marriott’s Starwood Acquisition

Fijian hotels could soon be involved now that Marriott International has cleared one of its major hurdles on its journey to acquire rival Starwood and become the world’s largest hotel
11 Apr 2016 10:15
Denarau, Momi Links In Marriott’s Starwood Acquisition
The Sheraton Fiji Resort on Denarau Island.

Fijian hotels could soon be involved now that Marriott International has cleared one of its major hurdles on its journey to acquire rival Starwood and become the world’s largest hotel chain.

Shareholders in both Marriott and Starwood Hotels & Resorts Worldwide Inc. approved the US$14.41 billion sale.

The merger vote puts an end to a hectic month in which Marriott had to fend off a last-minute competing bid from China’s Anbang Insurance Group. After aggressively pursuing Starwood, Anbang suddenly withdrew its bid, clearing the path for Marriott.

The acquisition has already been approved by U.S. antitrust regulators but still needs to clear authorities in the European Union and in China. The deal is expected to close in the middle of this year.

Marriott already has an agreement with the Fiji National Provident Fund to manage the 250-room Fiji-Marriot Resort being developed by the FNPF at Momi Bay, south of Nadi.

Starwood Group has owned and operated the Denarau properties Sheraton Fiji Resort, Sheraton Denarau Villas and The Westin Denarau Island Resort.

The three properties – operated as an integrated resort – were put up for sale by Starwood last year, with Starwood to continue to manage them after a sale is completed.

Holders of over 97 percent of Marriott shares present and voting at the meeting, representing over 79 percent of outstanding shares, voted in favor of a proposal to issue shares of Marriott common stock in connection with the transaction. Holders of over 95 percent of Starwood shares present and voting at the meeting, representing over 63 percent of outstanding shares, voted in favor of a proposal to approve the transaction.

At closing, Starwood stockholders will receive 0.8 shares of Marriott common stock plus US$21.00 in cash for each share of Starwood common stock.

Starwood put itself on the market last year. The company has struggled to grow as fast as its rivals, particularly in “limited service hotels,” smaller properties which don’t have restaurants or meeting facilities.

Feedback:  christine.nikola@fijisun.com.fj

Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: