MarriottStarwood

One of the five star hotel chains Marriott is eyeing to buy Starwood Hotels & Resorts to create the world’s largest hotel company. This big deal may lead to more hotel mergers as rivals to compete it. On Monday, it has aired to combine Marriott and Starwood at around $12.2 billion that would be the largest hotel company, having 5,500 hotels and more than 1.1 million rooms in more than 100 countries.

This new venture will have its own 30 hotel brands including the Ritz-Carlton, Courtyard, JW Marriott, St. Regis, W, Sheraton and Westin. Hotel Marriott located in Bethesda, Md has about 4,300 properties in its portfolio and most are operated as franchises run by private investors, while Stamford, Conn based Starwood has around 1200 hotels, with about half operated as franchises.

After acquiring the Starwood, Marriott’s size and breadth would bring other hotel companies like Intercontinental Hotel Group and Hilton Worldwide to merge with smaller operates to stay ahead in the race.

When the loyalty reward programs for the two hotel companies are merged, which will be a good opportunity for the globetrotters to generate more reward points. Marriott Rewards program has 54 million members, while Starwood Preferred Guest has 21 million.

This huge step will surely generate a great revenue for the Marriott by adding several more upscale brands to its portfolio, including Starwood’s St. Regis, W and the Luxury Collection.