The completion of Marriott International’s acquisition of Starwood


“The completion of Marriott International’s acquisition of Starwood Hotels & Resorts has significant consequences for the Middle East and Africa, in one swoop doubling the hotel giant’s operations in the region.

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On Friday morning, Marriott announced that the closure of the deal to create the world’s largest hotel chain, a $36 billion giant with more than 5,700 hotels and 1.1 million rooms.

“We’re about doubling overnight, from about 25,000 rooms to about 52,000 rooms,” Marriott chief executive officer Arne Sorenson told Arabian Business in a telephone interview.

It’s 238 hotels open and I think we’ve got another 40,000 rooms and 150 hotels in the pipeline, so when those hotels open we will be fast approaching 100,000 rooms. That gives us real scale in the Middle East and Africa.”

Explain using the concepts of economies of scale why Marriott is vying the Middle Eastern and African regions.

1) The essay should be about 2 pages font size 12. A minimum of 2 pages essay is required. Do not put unnecessary information and also do not write the essay like a short answer type question.

The essay should include an introduction with theoretical background, the body paragraphs (maximum 2 body paragraphs) and a conclusion.

2) The essay should be in your own words. Plagiarism is strictly prohibited. Anyone copying and pasting materials from the internet will get a grade of zero.

3) There will be more than 1 submission attempts. I will leave my comments after your initial submission so that you have the choice to go and re-do if needed.

4) You will be graded based on the rubrics provided.

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