UPDATE: Host Marriott Closes Purchase of 28 Starwood Hotels; Announces Name Change

BETHESDA, MD-Host Marriott Corp. has closed on its previously announced acquisition of 28 hotels from Starwood Hotels & Resorts Worldwide Inc. The purchase is just one phase of the merger agreement between the two companies that calls for Host to acquire 35 Starwood properties. The price tag for the entire deal stands at $4.2 billion. Host is making the payment with $2.8 billion in stock, as well as the assumption of existing debt and a cash allotment.

Host Marriott also closed on the issuance of approximately 133.5 million shares of common stock of the company to Starwood stockholders. Host Marriott announced that it will change its name to Host Hotels & Resorts, Inc. on April 17, and on April 18 it will begin trading on the New York Stock Exchange under the new ticker symbol HST.

Christopher J. Nassetta, president and chief executive officer, says the firm completed the financing of the cash portion of the transaction “as originally contemplated by completing certain high-multiple asset sales, the formation of a European joint venture and the recent issuance of senior notes.” The properties include hotels under the Sheraton, W, Westin, St. Regis and Luxury Collection brands. They will continue to be managed by Starwood under long-term management agreements.