Interval Leisure Group (ILG) has completed the acquisition of Vistana Signature Experiences, the owner and operator of high-end vacation ownership resorts, from Starwood Hotels & Resorts Worldwide.
With this purchase, the shareholders of Starwood will gain nearly 72.4 million of ILG shares valued at $14.24 per share or approximately 0.4309 shares of ILG stock for every Starwood share owned, and ILG paid approximately $123m in cash to Starwood, subject to post-closing adjustment.
With regard to the purchase, Vistana has made an 80-year global license agreement with Starwood for utilizing the Westin and Sheraton brands in vacation ownership.
Interval Leisure Group presently manages 250 managed resorts that include over 550,000 owners and nearly 10,000 employees.
ILG’s chairman, president, and CEO Craig M. Nash said: "With a portfolio that includes the worldwide exclusive rights in vacation ownership to the Sheraton, Westin, and Hyatt brands, as well as a strong financial profile, we are positioned to continue to execute on our strategic vision."
He added: "It is a great pleasure to welcome the 5,000 dedicated Vistana associates to the ILG family. With our mutual commitment to vacation ownership, I am confident that the combined company is poised to create more value for our stockholders."
Starwood’s chief executive officer Thomas B. Mangas said: "With the completion of this transaction, we’ve formed one of the industry’s largest and most respected providers of world-class vacation experiences.
"We’re thrilled by the opportunities this will create for our guests, partners, and associates, and the value this will generate for our investors.
This transaction also represents another important step toward the closing of our merger with Marriott, which remains on track for mid-year."
With this purchase, ILG has more than 250 managed resorts, encompassing over 550,000 owners and approximately 10,000 employees.
In regard to the acquisition, Vistana has entered into an exclusive, 80-year global license agreement with Starwood for the use of the Westin and Sheraton brands in vacation ownership.
Besides, ILG has the non-exclusive license for the existing St. Regis and The Luxury Collection vacation ownership properties.