然而，投资者面临的风险是如果交易失败。对于在交易中探索合并套利机会的投资者，存在一个风险回报比(Goetz 2016)。即使获得监管机构和反垄断机构的批准，价差也取决于Vistana剥离给Interval Leisure Group的股价。风险回报比很高，但对投资者来说却是长期利润。获得长期利润的机会表明回报的机会大于风险。这正是投资者理想的选择。那就是低风险高回报。尽管交易破裂的风险依然存在，但即使不会破裂，破裂带来的机遇也远远超过相关风险。因此，投资者应该投资于这家公司。
The risk for the investor, however, is if the deal breaks down. For investors exploring merger arbitrage opportunities in the deal there is a risk-to-reward ratio (Goetz 2016). Even after approvals from the regulatory body and anti-trust body, the spread is dependent on the spin-off of Vistana to Interval Leisure Group stock price. The risk-to-reward ratio is wide, but long term profits for investors. The opportunities for long term profits indicate that the chances of return/reward outstrip the risks. This is what an investor, ideally looks for. That is lower risks and higher returns. Although, the risk of the deal breaking down still remains, the opportunities, if doesn’t, far outweighs the involved risk. Thus, the investor should be investing in this company.
According to CEO of Marriott International, the immediate strategies are to focus on building a combined platform that will deliver advantages. In their plans, loyalty, nurturing corporate special relationships is on the planning board, apart from building group customer folio, contract business.
The differentiated price-strategy adopted by Marriott also allows it to focus on an exclusive market segment. Therefore the focus of the decision makers appears to be more about ‘occupancy’ than about the rate of the room. The continued demand by sovereign wealth funds in China, Middle East allows for asset diversification and currency diversification.
The implications of Marriott International Inc (NASDAQ:MAR) and Starwood Hotels & Resorts Worldwide Inc(NYSE:HOT) strategies to combine and synergize will lay the foundation of new phase of hospitality industry . Their strategy is now to offer layered options to their customers, across the various segments with their combined portfolio. The implications are ruled by forces of the industry and need to be monitored from time-to-time. There have to be variation or changes in responses to ensure the strategy work. This includes seasonal changes competitor analysis ensuring competition is not set to run over profits.