Marriott International (MAR) said it made a higher offer for Starwood Hotels and Resorts Worldwide (HOT) that was accepted by the owner of the Sheraton and Westin hotel brands.
The Marriott-Starwood deal will create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton, and the Autograph Collection. Marriott in November offered $12.2 billion, or $72.08 per, for Starwood.
Starwood shareholders will receive $21 in cash and 0.80 shares of Marriott Class A common stock for each share of Starwood common stock, Marriott said.
Starwood shares were trading at $82.72 before the opening bell. Marriott was slightly down at $72.
Under the revised agreement, Starwood will pay a breakup fee of $450 million, up from $400 million previously.
Starwood Chairman Bruce Duncan said the company was pleased that Marriott has “recognized the value” that Starwood brings to this merger.