STRENGTHS AND WEAKNESSES

STRENGTHS

The large room inventory gives it more power to negotiate with online travel agents and developer-partners The merger is expected to bring cost synergies at both operating and capital expenditure levels Has a much wider portfolio of products at different price levels catering to a much larger consumer segment The asset-light model can help MarriottStarwood grow faster than the domestic hotel chains

WEAKNESSES

Has too many brands; the distinction between brands is going to be an issue The integration of two big brands with different work cultures is already creating concerns for developer-partners As metro cities hit saturation point, the next phase of expansion is expected in smaller towns, where growth could be a challenge The scale advantage can easily be lost as more big chains look at mergers