Marriott To Buy Starwood For USD$12.2 Billion

Marriott International will buy Starwood Hotels & Resorts for USD$12.2 billion to create the world's largest hotel chain with brands including Sheraton and Ritz Carlton.

The combined company will have over 5,500 hotels with 1.1 million rooms worldwide, giving Marriott greater presence in Europe, Latin America and Asia and allowing it to better compete with apartment-sharing startups such as Airbnb.

Airbnb, seen as a disruptor for the travel industry, is expected to eat into hotels' business as it signs up more and more homeowners, analysts warn.

About three-quarters of Marriott's rooms are in the United States. Markets outside North America had about half of Starwood's rooms, but accounted for nearly two-thirds of its revenue in 2014.

The deal could spark consolidation in the industry as other hotel groups look to gain scale.