Investor group launches surprise bid for Starwood Hotels

$76-per-share offer could threaten Marriott-Starwood merger

TRD New York /
Mar.March 14, 2016 09:00 AM

Marriott Hotels suddenly faces competition in its bid to take over Starwood Hotels & Resorts – previously considered a done deal. On Monday, Starwood announced it received an unsolicited acquisition offer from an unnamed investor group for $76 per share, as well as stock considerations.

In November, Marriott reached a deal to buy the Stamford, CT-based hotel REIT for $12.2 billion – or around $72.08 per share at the time. Starwood, which owns hotel brands like Westin, W Hotels, St. Regis and Sheraton, had reportedly been looking for a buyer since April and received several offers before settling on Marriott.

According to Starwood’s statement, the Marriott offer of 0.92 Marriott shares and $2 in cash for each Starwood share has a current value of $63.74 per share, or around $10.8 billion total. The new offer, on top of $76 per share in cash, also includes stock considerations valued at $5.50 per share.

On Starwood’s website, the REIT said it received a “waiver” from Marriott allowing it to consider the new bid and began discussions with the mystery consortium on Friday.

“Starwood’s Board of Directors has not changed its recommendation in support of Starwood’s merger with Marriott,” the statement reads. “The Board, in consultation with its legal and financial advisors, will carefully consider the outcome of its discussions with the Consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.”

News broke over the weekend that Chinese insurer Anbang had purchased the Strategic Hotels & Resorts portfolio of 16 hotels from the Blackstone Group. – Konrad Putzier


Related Articles

arrow_forward_ios
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

Courtyard by Marriott in Herald Square to close permanently

Courtyard by Marriott in Herald Square to close permanently
Arne Sorenson (Getty)

Marriott claims Covid-induced crisis for hotels has bottomed out

Marriott claims Covid-induced crisis for hotels has bottomed out
Survivors accused Hilton, Marriott, Wyndham and others of knowing about sex trafficking on the property and still financially benefitting (Credit: Wikipedia Commons, iStock)

Major hotel chains named in sex trafficking lawsuits

Major hotel chains named in sex trafficking lawsuits
Marriott Vacations Worldwide CEO Stephen Weisz and 33 West 37th Street (Credit: Google Maps)

Marriott Vacations buys six Midtown commercial condos for $86M

Marriott Vacations buys six Midtown commercial condos for $86M
Clockwise from left: AC Hotel Midtown Miami, E11even and the Gabriel Miami (Credit: iStock, Wikipedia)

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV
181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Claremont Companies buys Soho Marriott for $59M
Union Square W Hotel at  201 Park Avenue South (Credit: Wikpedia)

Marriott buys Union Square W Hotel

Marriott buys Union Square W Hotel
OYO Hotels CEO Ritesh Agarwal and OYO Townhouse in Dallas, Texas (Credit: OYO Hotels and Getty Images)

Indian hotel startup to launch in NYC, LA with $300M US investment

Indian hotel startup to launch in NYC, LA with $300M US investment
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...