At Georgetown’s McDonough School of Business, Marriott International CEO Arne Sorenson provided some insight into the decision behind merging with Starwood. He said after negotiating to renew Marriott’s contract with Expedia, through which Marriott loses 10 to 15 percent of revenue per room, he realized that the 1.1 million hotel rooms in the merged portfolio could serve as leverage in such negotiations.
He went on to say Marriott’s ability to entice customers to book directly will increase with the addition of Starwood’s loyal customers.
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