Host Marriott has agreed to buy 38 properties including the Sheraton New York Hotel & Towers from Starwood Hotels & Resorts Worldwide...
Host Marriott has agreed to buy 38 properties including the Sheraton New York Hotel & Towers from Starwood Hotels & Resorts Worldwide for about $3.4 billion — the largest hotel deal this year.
Host Marriott will pay $2.33 billion in stock and $1.06 billion in cash and assume $600 million in debt. It will purchase hotels with a total of 18,964 rooms, the companies said Monday in separate statements. Starwood will continue to manage the hotels.
Among the hotels included in the deal are the 1,746-room Sheraton New York and the 891-room Westin Seattle and the 426-room W Seattle. The recently opened Westin in Bellevue is not included.
The deal also covers the 1,044-room Sheraton San Diego Hotel & Marina in San Diego and the 688-room W New York.
Most Read Stories
- UW Huskies awarded No. 4 seed for College Football Playoff, to play No. 1 Alabama in Peach Bowl
- Once extinct in Washington, fishers return to Mount Rainier
- Seahawks’ Earl Thomas hints at retirement on Twitter after breaking bone in leg vs. Panthers
- Three rounds of lowland snow possible in Western Washington
- Fancy a weekend jaunt? Seattle, Portland booms put I-5 drivers in a jam | FYI Guy
Shares of Host Marriott fell 79 cents to $16.65 Monday, the biggest decline since August 2003. Starwood rose 76 cents to $60.02.
Host Marriott said the purchase will close by the end of the first quarter and that it will change its name to Host Hotels and Resorts. The company will have an enterprise value of $16 billion, making it the largest U.S. hotel company.
The acquisition is the largest in the U.S. hotel and casino industry this year. The next-largest are the purchases of Wyndham International and La Quinta by buyout firm Blackstone Group, each for about $3 billion, including debt.
Host Marriott was created by the split of the former Marriott in 1992. Marriott International now mainly manages and franchises hotels on behalf of owners such as Host Marriott.