Marriott Soars with Starwood in $12.2B Sale

Traders stand by the post where the stock for Starwood Hotels & Resorts Worldwide Inc is traded on the floor of the New York Stock Exchange

In metro Detroit, the deal would involve both business and leisure hotels. Sorenson said it was too soon to tell how many more may be added as a result of the deal. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, impressive record of earnings per share growth and increase in net income. Both hotels host groups holding conventions and meetings in the city. "In addition to its eponymous chain, Marriott also operates Courtyard and Residence Inn hotels.

Starwood brands include W Hotels, St. Regis, Westin and Sheraton. The transaction's value is now $72.08 per Starwood share.

Starwood shareholders will own about 37 percent of the combined company. The companies expect the deal to close in mid-2016, following shareholder and regulatory approvals.

The deal is expected to close mid-2016.

The Four Points is the only Starwood hotel in the state, according to the Starwood website. CNBC reported on Oct 28 that Hyatt was holding takeover talks with Starwood.

"Our board concluded that a combination with Marriott provides the greatest long-term value for our shareholders and the strongest and most certain path forward for our company", Bruce Duncan, chairman of the board at Starwood, said in a statement.

Marriott was drawn in particular to Starwood's large worldwide presence and its appeal to younger travelers, Sorenson said.

Marriott will lead following the merger of the two companies and its current CEO will remain the head of the company. Fitch expects Marriott will assume Starwood's outstanding unsecured bonds and/or refinance any of Starwood's bonds that may be subject to change of control provisions that are triggered by this transaction.

Deutsche Bank Securities is the financial advisor to Marriott worldwide and Gibson, Dunn & Crutcher is its legal counsel. "We are also delighted that our associates will have expanded opportunities as part of a larger organization that is consistently recognized as one of the best companies to work for in the world".

"It's possible Starwood Preferred Guest will be merged into Marriott Rewards, and perhaps a few Starwood elite benefits will trickle their way into the Marriott Rewards program", blogger Ben Schlappig wrote.

The sources, who asked not to be identified because they were not authorized to speak on the record, said that Starwood left "no stone unturned" in its process of seeking a buyer.