Marriott International is buying its rival, Starwood Hotels & Resorts, for US$12.2bn (€11.4b, £8bn), creating the world’s largest hotel company, with 5,500 hotels and 1.1 million bedrooms worldwide across 30 brands.

“The driving force behind this transaction is growth,” said Arne Sorenson, president and chief executive officer of Marriott International. “This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace.”

Marriott has more than 4,300 properties in 85 countries and territories, and operates and franchises hotels under The Ritz-Carlton, Bvlgari, Edition, JW Marriott, Autograph Collection, Renaissance, Marriott, Delta brands and more.

Starwood has more than 1,270 properties in 100 countries, and operates and franchises the St. Regis, The Luxury Collection, W, Design Hotels, Westin, Le Meridien, Sheraton, Four Points by Sheraton, Aloft, Element and the recently introduced Tribute Portfolio brands.

J.W. Marriott, Jr. executive chair and chair of the board of Marriott International, said: “We have competed with Starwood for decades and we have also admired them. I’m excited we will add great new hotels to our system and for the incredible opportunities for Starwood and Marriott associates.”

Sorenson will remain as president and CEO of Marriott International following the merger, and Marriott’s headquarters will remain in Bethesda, Maryland, US. Marriott’s board of directors will increase from 11 to 14, with the expected addition of three members of the Starwood board of directors.

Adam Aron, Starwood Hotels & Resorts Worldwide CEO on an interim basis, added: “The combination of our two companies brings together the best in innovation, culture and execution. Our guests and customers will benefit from so many more options across 30 hotel brands, while our hotel owners and franchisees will derive value from our combined global platform and efficiencies.”