How Marriott Kept Starwood Deal Secret

Photo credit: courtesy of World Travel & Tourism Council

For weeks, word floated around the rumor mill about Chinese companies, Hyatt Hotels and even InterContinental Hotels vying for Starwood. So when Marriott swooped in and nabbed the owner of brands like Sheraton, W, Le Meridien and Aloft, it caught the industry by surprise.

So how did Marriott keep the $12.2B deal a secret? CEO Arne Sorenson told Fortune that they're just that compulsive. Some Marriott executives even had to sign confidentiality agreements.

And this wasn't some last-minute deal. The truth is, the acquisition was about seven months in the making. Marriott's interest was initially piqued when Starwood first put itself up for strategic review, but they decided it was too expensive. Then Starwood's relative value increased, and Marriott began to see the benefits of operating a bigger business.

By the time they came around, they had already examined the numbers closely, so the rest of the deal came together quickly. Well played, Marriott. Well played. [Fortune]

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