Last year, the hotel industry witnessed widespread slowdown following the controversial travel ban imposed by President Trump and disruptions caused by hurricanes. However, the sector shed the blues quickly and is getting back on track as economic growth gathers momentum. Though competition and cost escalation continues to be a major challenge, the sector is in for some hectic activity this year.
Marriott currently expects the stock-and-cash transaction to contribute to the earnings of the new firm – to be traded on the New York Stock Exchange under the symbol VAC – within the first year after closure. It will continue to be headquartered in Orlando and two ILG board members will join the Marriott board, taking the total number of members to 10.
Post-merger, the combined entity will become the biggest premium timeshare vacations brand in the country
“With ILG, we will bring together six world-class vacation ownership brands under one licensing relationship with Marriott International (MAR), which will enable us to leverage high-value marketing and sales channels, including those provided by Marriott International’s platforms,” said Marriott CEO Stephen Weisz.
It is expected that the unique combination – of two highly complementary industry-leading businesses – would generate significant long-term operational synergies for both the company and its partners.
Earlier this year, leading hospitality group Wyndham Worldwide (WYN) announced an agreement to acquire the hotel operations of La Quinta Holdings (LQ) for $2 billion in an all-cash deal.
Marriott Vacations shares lost more than 5% in early trading Monday, after holding steady for nearly a fortnight. Meanwhile, shares of ILG gained nearly 6% in the initial hours of the session.