Market Overview

Bentz: Here's The Concern For A Starwood-Marriott Merger

Bentz: Here's The Concern For A Starwood-Marriott Merger
Related HOT
The Hotel Pair Trade: Hilton vs. Marriott
3 Things To Keep In Mind Regarding The Marriott Vacations-ILG Buyout Report
Related MAR
Morgan Stanley Analyzes The Lodging Sector's M&A Potential
Here's What Airbnb Said In A Letter To Marriott's CEO

In an unexpected development in the Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) acquisition battle, Chinese firm Anbang Insurance Group decided to walk away from its proposed takeover for almost $14 billion.

Talented Blonde analyst Kristin Bentz shared some thoughts on the issue in a blog post published on late Thursday. This is a big win for Marriott International Inc (NASDAQ: MAR), she assured. However, she noted, there is one foreseeable concern: how will Marriott steamroll Starwood’s Luxury Collections into its “less-than-stellar Autobiography lineup?”

Moreover, “What kind of culture-clash can be expected with the young-money consumer who flocks to the W Hotels brand and the more traditional values ethos of Marriott International?” she asked.

One additional element of concern is “whether the DOJ will react positively to the new conglomerates possible monopoly in hotel rooms in 5 of the 6 largest cities in the U.S.”

Shares of Starwood, the operator of Sheraton and Westin hotels, were trading down about 4.1 percent, on Thursday’s after-hours session, while shares of Marriott tumbled 4.66 percent since the bell rang.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for HOT

Sep 2016CitigroupTerminatesNeutral
Aug 2016CitigroupMaintainsNeutral
Jul 2016Canaccord GenuityTerminatesHold

View More Analyst Ratings for HOT
View the Latest Analyst Ratings

Posted-In: Anbang Kristin Bentz Talented BlondeAnalyst Color News M&A Analyst Ratings Movers Best of Benzinga


Related Articles (HOT + MAR)

View Comments and Join the Discussion!

Partner Center