ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Wednesday, February 19, 1997 TAG: 9702190097
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: WASHINGTON
Marriott International has struck a $1 billion deal to purchase Renaissance Hotel Group, more than doubling Marriott's international presence.
Marriott's offer, announced Tuesday, outbid Doubletree Corp., which had made an earlier offer to buy Hong Kong-based Renaissance for $890 million. Doubletree said it was not willing to raise its bid and will receive $15 million for the breakup of its deal with Renaissance.
Stock in Renaissance Hotel Group jumped $4.62 1/2 per share to close Tuesday at $29.75 on the New York Stock Exchange, while Marriott's stock went up $1 per share, closing at $56.25. Doubletree's stock rose $2.50 a share to $43.12 1/2.
Renaissance operates or franchises 150 hotels in 38 countries. The acquisition will open 40 international markets to Marriott, including Russia, China, Japan, India, Italy and Turkey.
In addition to upscale lodgings, it also licenses the Ramada name in the United States and Canada.
Marriott is offering Renaissance shareholders $30 for each share of their stock. Doubletree offered $26.67 in cash and stock.
A combined Marriott-Renaissance will operate or franchise more than 1,300 hotels worldwide, including nearly 200 outside the United States.
- Associated Press
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