Travelocity, Marriott to merge
- by admin
Travelocity and Marriott announced Wednesday that they will merge to form one global hotel company.
The combined company will have about 15,000 hotels across more than 60 countries, and will be headquartered in New York City.
Travelocity has said it wants to focus on customer experiences and on being an “experience provider.”
The merger will mean that the two companies will be able to offer their own brands of hotels in many more countries, including China, India, the Middle East and South America.
The merger also includes Marriott’s new hotel-hosting business, which will be spun off from its existing hospitality division, with the new company making hotels available online.
“This merger will be transformative for our businesses, our customers and our company,” said Michael J. Mulligan, chairman and CEO of Travelocity.
“We have a lot of very exciting new opportunities ahead.”
The company said the merger will create a more consolidated and vertically integrated company with a greater focus on global operations.
The merged company will be called Travelocity Group and will have offices in the United States, China, Hong Kong and Singapore.
The two companies are not the same company, according to a press release.
“The merger creates a global brand with more than 30,000 hotel properties in more than 100 countries, which are the foundation of our success,” said Richard P. Gagnon, CEO of Marriott International.
“Combining these companies creates an extremely effective global company with more locations and more capabilities.”
The combined entity will be a unit of the hotel giant Marriott International, which operates about 40,000 properties in 37 countries.
The company will also own a portion of Travelzoom, which it bought in 2013 for about $5 billion.
The deal includes a $4 billion stock buyback, as well as a $500 million cash infusion.
The new company will work closely with both companies to build out the company’s brand, said Robert D. Stengel, senior vice president of international marketing and strategic partnerships for Marriott International and one of the co-chairs of the merger.
“We look forward to bringing the Travelocity brand to the next level, and to bringing our global reach to all Marriott hotels,” he said in a statement.
The companies said the new business will be focused on customer experience and will offer more flexible booking options, including on-demand booking, with a focus on hotel guests from the Middle Eastern, Asian and African regions.
A statement from Marriott International said the combined company has a “high-quality global brand and global footprint” with more properties in 25 countries.
According to a statement from the merged company, the combined hotel will be based in New Jersey and will operate in 10 markets around the world, including Hong Kong, Singapore, Singapore and New York.
‘A good fit’The merger was expected.
In a statement, the merged companies said they look forward “to working with Travelocity to build a great company, and we are thrilled to work with a global leader in hospitality and travel services.”
The deal was announced in a conference call with investors, including the heads of the largest U.S. hotel chains.
Marriott’s board said the merged group will have “more resources and expertise to continue to enhance our global brand, offering guests, guests and guests with a wide variety of experiences and experiences across multiple cities and cultures.”
“Our focus will be on bringing more of our guests and partners into our hotels across the globe,” said David D. Kornblum, chairman of the board.
“As part of our continued efforts to serve customers across our portfolio of more than 20 million hotels and suites, we have an enhanced opportunity to be the global hotel provider for the world.
We are looking forward to being part of this exciting new adventure,” he added.
More to come.
Travelocity and Marriott announced Wednesday that they will merge to form one global hotel company.The combined company will have about…
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