BETHESDA, MD-Host Marriott Corp has just disclosed it’s signed an amendment to the merger agreement with Starwood Hotels & Resorts Worldwide Inc. As part of the original merger agreement, Host Marriott agreed to acquire 38 hotels from White Plains-based Starwood for about $4 billion. Under the new pact, the buyer is taking 35 hotels for about $3.76 billion.

Eliminated from the deal are three hotels in Canada, a change linked to tax issues, according to a press release issued this morning. The other alterations to the deal involve deferring closings for five hotels in Europe until after the merger and not assuming fiscal responsibility for Sheraton Holding Corp’s issuance of $600 million in senior notes, thereby lessening the debt involved in the takeover. The initial closing of the multibillion-dollar merger is on schedule to close April 10.

The hospitality giants revealed the sales transaction in November, two months after reported the two were in talks about a deal. Among the more notable properties that will switch ownership to Host Marriott when the deal closes are the 1,746-room Sheraton New York Hotel & Towers; the W New York, a 688-room property; the 1,216-room Sheraton Boston Hotel; the 1,044-room Sheraton San Diego Hotel & Marina; the Westin Seattle, an 891-room hotel; and the W Seattle, a 426-room facility.

At that time, Starwood chief executive officer Stephen J. Heyer said of the portfolio sale, “This transaction puts a strategic stake in the ground, accelerating Starwood’s transformation from a real estate company with some hotel brands to a consumer lifestyle company with a branded hotel portfolio at its core. This well-timed sale commits Starwood to an ‘asset right’ strategy, shifting our revenue and profit mix to place greater emphasis on successfully developing and leveraging our renowned brands.”

Christopher J. Nassetta, president and CEO of Host Marriott, added, “We believe these assets represent one of the highest quality lodging portfolios available and they will compliment our existing portfolio of outstanding hotels. We also believe that we acquired the portfolio at an attractive price that will be accretive to both our earnings and our credit and will add to the short-term and long-term value of the company.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.