Swan and Dolphin: Marriott to aquire Starwood Resorts and Hotels

[k5jm]

Well, that makes getting reward points a little easier for S&D...

http://news.marriott.com/2015/11/ma...rldwide-creating-the-worlds-largest-hote.html

 

[Kimberle]

I wonder how this will affect the S&D. Maybe Pete will have some info for us on tomorrows podcast.

 

[OKW Lover]

I'm looking forward to this. I'm Gold in both the Marriott and SPG programs so maybe with the combination of the two I can get Platinum.

I'm doubting there will be any real news on tomorrow's podcast. Its still way to early in the merger process for any real info to be known. I'm sure somewhere somebody will speculate that Disney is going to "buy back" or at least manage the Swolphin as part of the merger. There are a lot of Marriott properties very near WDW, including two new ones being built at Flamingo Crossing, and maybe the combined entity will want to divest some of them.

 

[k5jm]

Received this from Starwood this evening:

Today we're excited to share the news that Starwood Hotels & Resorts will join together with Marriott International to create the world's largest hotel company. For our Starwood Preferred Guest® (SPG®) members, this will mean even more choices in even more places, giving you access to 1.1 million rooms across 5,500 hotels and resorts in more than 100 countries.

We will work to bring you the very best of SPG and Marriott Rewards®, two of the most rewarding loyalty programs in our industry. Our members are at the core of everything we do, and that will not change.

Today is the first day of a long journey as we combine our two companies. For now, we remain separate, and there is no change to your SPG program status, your Starpoints® or your existing reservations. You will continue to earn Starpoints and elite stay/night credit for your stays, as well as bonus Starpoints for any promotions in which you are participating. There is no change to how you manage your SPG account or book reservations.

Over the coming months, as we have more to share, we'll be sure to reach out to you by email, at spg.com and via twitter (@spg). In the meantime, we remain at your service wherever you need us — whether in our hotels, atspg.com, on the SPG mobile app or via our Customer Contact Centers.

Thank you for sharing your travels with us.

Chris Holdren
Senior Vice President, Starwood Preferred Guest

 

[OKW Lover]

Thanks for posting that @WebmasterMike. I'm expecting the same kind of thing from Marriott. Actually kind of surprised that I haven't gotten anything yet from them.

 

[jcb]

The small irony here is that Tishman (S/D developer) filed a lawsuit when he was building the S/D alleging that Disney had reneged on a promise to grant Tishman privileged status when Disney agreed to let Marriott build a convention center (what is now Marriot World Center) on Disney property. Tishman threatened to stop construction on the S/D unless Disney "agreed to stand by its promise not to allow hotels or convention space to be built on Disney land for 10 years." http://articles.orlandosentinel.com...0165_1_walt-disney-tishman-disney-productions

I also wonder whether the original deal for the Swan / Dolphin included a provision giving Disney a repurchase option if the S/D were ever sold or ownership of them ever changed. At one time, I collected the publicity surrounding the S/D litigation but don't recall this being mentioned in any articile. The question then would be whether Disney might decide to exercise that option.

I should clarify something. As I understand it "Tishman Hotel Corporation" owns the Dolphin (and presumably the Swan) (at least it did as recently as August of 2013). I doubt Marriott's purchase of Sheraton/Starwood will change "ownership" of the S/D but the brands might change, depending on how Marriott restructures them.

 

[OKW Lover]

I also wonder whether the original deal for the Swan / Dolphin included a provision giving Disney a repurchase option if the S/D were ever sold or ownership of them ever changed. At one time, I collected the publicity surrounding the S/D litigation but don't recall this being mentioned in any articile. The question then would be whether Disney might decide to exercise that option.

I should clarify something. As I understand it "Tishman Hotel Corporation" owns the Dolphin (and presumably the Swan) (at least it did as recently as August of 2013). I doubt Marriott's purchase of Sheraton/Starwood will change "ownership" of the S/D but the brands might change, depending on how Marriott restructures them.

I think your last paragraph is the important distinction. I think Tishman still owns the actual land-lease and presumably the buildings thereon. The hotels themselves are probably operated either directly by SPG or a franchisee.

 

[jcb]

I think your last paragraph is the important distinction. I think Tishman still owns the actual land-lease and presumably the buildings thereon. The hotels themselves are probably operated either directly by SPG or a franchisee.

I agree. Tishman Hotel Corp's website refers to the Dolphin as a "Sheraton-managed hotel" and the Swan as a "Westin-managed hotel". http://www.tishmanhotels.com/properties/index.html I'm not sure what this means legally, however. I do know that in 2013 Tishman (as opposed to Sheraton) was the defendant and agreed to settle an ADA lawsuit by making physical changes to the Dolphin (e.g. counter height type of changes) over a five year period.

 

[OKW Lover]

Just to add that even though Tishman is (probably) the actual owner, there's nothing to prevent the two parties (Disney and Tishman) from negotiating a change/termination of the lease. If a deal could be worked out that was in the best interest of each company, two reasonable parties could accomplish it.

The benefit to Disney of acquiring the Swolphin is more rooms under its control and a likely higher rack-rate than what people often pay at the Swolphin. The benefit to Tishman to sell would be some presumable payment of forecasted revenues (discounted to today's dollars) and elimination of future earnings uncertainty. Of course, then it would be up to Disney to negotiate their way out of the Sheraton/Westin management agreement.

 

[jcb]

Just to add that even though Tishman is (probably) the actual owner, there's nothing to prevent the two parties (Disney and Tishman) from negotiating a change/termination of the lease. If a deal could be worked out that was in the best interest of each company, two reasonable parties could accomplish it.

The benefit to Disney of acquiring the Swolphin is more rooms under its control and a likely higher rack-rate than what people often pay at the Swolphin. The benefit to Tishman to sell would be some presumable payment of forecasted revenues (discounted to today's dollars) and elimination of future earnings uncertainty. Of course, then it would be up to Disney to negotiate their way out of the Sheraton/Westin management agreement.

"two reasonable parties" - well that blows that idea.

 

[OKW Lover]

Thanks for posting that @WebmasterMike. I'm expecting the same kind of thing from Marriott. Actually kind of surprised that I haven't gotten anything yet from them.

Just got a similar email from Marriott today (salutation/signature omitted):

As a valued member, we're excited to share the news that Marriott International will join together with Starwood Hotels & Resorts to create the world's largest hotel company. For our Marriott Rewards members, this will mean even more choices in even more places, giving you access to 1.1 million rooms across 5,500 hotels in more than 100 countries.

Marriott Rewards and Starwood Preferred Guest (SPG) are among the industry's most-awarded loyalty programs, and they should be even stronger when the companies merge. Our programs and brands complement each other well, and we intend to draw upon the best of both programs to provide more value for our guests and hotels.

This is the start of a long journey as we combine our two companies. For now, we remain separate, and there is no change to your Marriott Rewards program status, your Rewards points or your existing reservations. You will continue to earn Rewards points and elite stay/night credit for your stays, and bonus points for any promotions in which are you are participating. There is no change to how you manage your Rewards account or book reservations.

Over the coming months, as we have more to share we'll be sure to reach out to you by e-mail, at marriottrewards.com and via twitter (@MarriottRewards). In the meantime, we remain at your service wherever you need us—whether in our hotels, at marriottrewards.com, the Marriott mobile app, or via our Customer Care Centers.