Hotel operator Host Marriott is to acquire 38 luxury properties from fellow US company Starwood Hotels & Resorts for $4.04bn (£2.3bn).
The deal - one of the largest in the hospitality industry for some time - will boost Host Marriott's total estate by nearly 19,000 rooms.
It will see the firm expand into Europe for the first time, adding hotels in Rome, Madrid, Milan, London and Venice.
Most of the hotels being sold trade under the Sheraton and Westin brands.
Checking out
The largest hotel being sold is the Sheraton in New York, which has more than 1,700 rooms.
The deal will enable Host Marriott to diversify geographically and broaden its portfolio of properties.
At the moment, 70% of its hotels trade under the Marriott brand.
"The Starwood portfolio fits our stated strategy of owning irreplaceable assets in premier markets with strong growth profiles and limited near-term supply," said James Risoleo, Host Marriott's executive vice president of acquisitions and development.
The deal, which must be approved by both companies' shareholders, is expected to complete early next year.
The hotel sector has seen increased takeover activity recently, reflecting the industry's recovery from a prolonged slump triggered by the 11 September terrorist attacks.
US hotelier Hilton Hotels Corporation said recently it was in talks to acquire its UK namesake Hilton Group.
By: N. Peter Kramer
