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Shares of Starwood rose nearly 4 percent in early trading on Monday to 83.75 dollars while shares of Marriott edged down 0.64 percent to 72.68 dollars.
Starwood shareholders will own approximately 34 percent of the combined company's common stock after the merger, based on current shares outstanding.
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Marriott expects the transaction to have little effect on its earnings in 2017 and 2018.
One-time transaction costs for the merger are expected to be about 100 million to 130 million dollars. Transition costs are also expected to be incurred over the next two years.
The deal trumped last week's boosted bid from China's Anbang Insurance Group Co., which did not comment on the deal.
Anbang has made headlines with the acquisition for Waldorf Astoria [url=http://www.dodgersauthoritystore.com/...-herman-jersey-c-15/]Babe Herman Jersey[/url] , a landmark hotel on Park Avenue in the Big Apple in October 2014.
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