Two innovators in hotel foodservice are combining into one through Marriott International’s $12.2 billion purchase of Starwood Hotels & Resorts.
The deal will form a lodging titan with foodservice operations ranging from free breakfasts at SpringHill Suites to the white-tablecloth dining rooms of Ritz-Carlton, St. Regis and Le Meridien. Its catering, banquet and restaurant operations extend to more than 5,600 hotels and 30 brands worldwide.
In addition to controlling such heritage brands as Marriott, Courtyard, Westin, Sheraton and Renaissance, the combined company would manage a number of so-called lifestyle hotel chains, including Loft, Element, AC, Moxy and Delta.
Starwood’s timeshare and interval-share businesses would be spun off.
Marriott agreed to pay .9 of a common share for every Starwood share.
It noted in the announcement of the deal that $200 million in operating costs would be saved by combining operations.
The deal is subject to approval by Starwood’s shareholders.