Marriott becomes largest hotelier in the world after purchasing Starwood

On a different note, The Company has disclosed insider buying and selling activities to the Securities Exchange, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the officer (CAO & General Counsel) of Starwood Hotel & Resorts Worldwide, Inc, Siegel Kenneth S had sold 6,656 shares worth of $559,171 in a transaction dated June 3, 2015.

While this dominance has not been replicated in Australia, where French-based Accor and the listed Mantra Group are the biggest players, by 2020 Marriott-Starwood could potentially operate more than 7500 hotels rooms.

Transaction Highlights and Strategic Benefits Under the terms of the agreement, at closing, Starwood shareholders will receive 0.92 shares of Marriott worldwide, Inc.

The latest deal would leave Marriott with 5,500 properties and more than 1.1 million rooms around the world, uniting Starwood's brands, which include Aloft, Sheraton, Westin, W and St. Regis, with Marriott's two dozen brands including Marriott's Courtyard, Ritz-Carlton and Fairfield Inn.

Sorenson will remain president and CEO of the combined company.

The deal is expected to close in mid-2016, the companies said.

If that were to happen, it's likely that one Starwood point would be equivalent to multiple Marriott points, Honig says. "This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace". This deal will also be watched closely by frequent business travelers.

The combined company will have over 5,500 hotels with 1.1 million rooms worldwide, giving Marriott a greater presence in markets such as Europe, Latin America and Asia and allowing it to better compete with apartment-sharing startups such as Airbnb.

"The hashtag for Starwood's preferred guest program, #SPGlife, is mentioned in more than 55,000 posts on Instagram, while the hashtag for Marriott's loyalty program, #MarriottRewards, appears in just over 3,000 posts on Instagram", Tadena writes. While there have been market rumors about a potential deal with Intercontinental Hotel Group and Hyatt Hotels Corp, it was the offer of Marriott that succeeded after the boards of both companies unanimously approved the acquisition. In the past few years, Starwood has made a strong push to grow in China, India, and the United Arab Emirates as well as more-established European destinations.

Marriott estimated $100 million to $150 million in charges related to the deal and annual savings of at least $200 million starting the second year after the transaction closes.

A few analysts suggested Marriott's offer wasn't as high as investors expected.

McGee said it's possible Starwood could move to Marriott headquarters in Bethesda, Maryland. The company has found success in expanding its overseas operations; about half of Starwood's rooms are outside the U.S.

Starwood's future has been a subject of speculation since Frits van Paasschen unexpectedly resigned as chief executive in February following a disagreement with board members over strategy.

Abha Bhattarai contributed to this article.