Marriott is buying Starwood for $12.2 billion to create the world's largest hotel company

Marriott International is acquiring Starwood Hotels & Resorts, creating the world's largest hotel company.

The deal is valued at $12.2 billion, consisting of $11.9 billion worth of Marriott stock and $340 million in cash. For each share of stock, Starwood investors will receive $2.00 in cash and 0.92 shares of Marriott, with Marriott priced at $72.08 per share.

Marriott (MAR) closed Friday at $72.74. Starwood (HOT) closed at $75.00.

Combined, the company will be able to offer 1.1 million rooms in over 5,500 hotels across over 100 countries.

More to come...