Marriott deal creates world's biggest hotel chain

The country's largest hospitality player in terms of number of rooms — the Tata Sons-promoted Taj group of Hotels — has been displaced from its top position by the global merger of international hotel chains Marriott and Starwood Stock Market Trading Tips

Marriott International Inc's acquisition of Starwood Hotels & Resorts Worldwide Inc. for $12.2 billion would enable the combined entity to not only create the world's largest hotel chain but also the biggest hotel chain in India by rooms. Till August 2015, Marriott and Starwood individually stood at number four and five in the pecking order in terms of room inventory in India with the Taj Group with almost 13,200 rooms cutting across all segments — from luxury to budget — being the market leader. With the merger between the two global chains, the two together would now have 13,500 rooms in India — overtaking Taj, said Manav Thadani, chairman Asia-Pacific of HVS, a hospitality consulting major. Globally, the two have 5,600 hotels with 1.1 million rooms. 

Together Marriott and Starwood will offer 13 different brands in India. The top brands for Marriott in India include Ritz Carton, JW Marriott and Marriott, while the top brands for Starwood include St Regis, Westin, Sheraton and Le Meridien. The marquee brand for Marriott in India is Bengaluru's Ritz Carlton and for Starwood, the flagship is Mumbai's St Regis. While St Regis is India's tallest hotel, the JW Marriott Marquis in Dubai is the world's tallest hotel Commodity Market Astrology Tips

"We can expect to see a lot of synergies in each of the markets they operate in and this would potentially include streamlining of operations for both of them. We believe this is a good start and potentially a start to a few more mergers expected to take place around the world," Thadani said. 

The biggest impact on the Indian hospitality landscape will come from the huge loyalty programmes these chains run. Marriott Rewards and Starwood Preferred Guest have 5.4 crore and 2.1 crore members, respectively. Marriott will have 30 hotels operational in India by next month, with 45 in the pipeline. "This will be a big pull for guests and make a huge difference for other hotels in India," said a senior official of a leading Indian hotel chain who did not wish to be identified Jackpot Stocks Trading Tips