Marriott, Anbang’s bidding war for Starwood may not be over

Beijing-based insurer can afford to up its offer: experts

TRD New York /
Mar.March 22, 2016 08:35 AM

The drama around the sale of Starwood Hotels & Resorts may yet continue.

Anbang Insurance Group has the will and the capital to top Marriott International’s $13.6 billion bid, made public Monday, experts told Bloomberg.

“I have to believe there is at least one more act to this play,” Frank Aquila, a partner the at law firm Sullivan & Cromwell, who has no part in the negotiations, told the news service. “Anbang seems to be very aggressive in its recent bids and if it’s worth this much to Marriott, Anbang may well come back with a little bit more.”

Marriott’s bid topped Anbang’s Friday offer of $13.2 billion, which itself was a sweetened version of a previous $12.6 billion bid. As it stands now, Marriott will buy Starwood — which operates hotel brands such as W, Sheraton, Westin and St. Regis — for about $21 in cash and 0.8 Marriott shares for every share of Starwood.

The new agreement also ups the deal’s breakup fee to $450 million, from $400 million.

“I think there is room for the Anbang consortium to come in at a higher price, even with the $50 million increase in the breakup fee,” Lukas Hartwich of Green Street Advisors told Bloomberg. “It doesn’t appear the market expects a much higher offer, which is interesting given Anbang’s aggressive track record.”

Anbang, which paid $1.95 billion for the Waldorf Astoria hotel in 2014, is flush with cash, with international ambitions and strong ties to China’s government. The company paid $6.5 billion to the Blackstone Group for the 16-building Strategic Hotels & Resorts portfolio earlier this month. [Bloomberg]Ariel Stulberg


Related Articles

arrow_forward_ios
Ken TaeHern Kim, Zhongyuan Li and the Hyatt Regency Waikiki Beach (Linkedin, Google Maps)

Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal

Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
Marriott CEO Arne M. Sorenson. President Donald Trump and Marriott Four Points in Havana (Getty)

Trump Administration pulls plug on Marriott’s Havana Sheraton

Trump Administration pulls plug on Marriott’s Havana Sheraton
Anbang’s Andrew Miller, Mirae’s Peter Lee and (from left) JW Marriott Essex House, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole (Credit: Marriott, Westin, Four Seasons)

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways
Clockwise from the top left: JW Marriott Essex House in New York, the Four Seasons in Jackson Hole and the Westin St. Francis in San Francisco with Daija CEO Andrew Miller (Credit: MusikAnimal via Wikipedia; Jackson Hole Real Estate; Booking)

Anbang’s $5.8B hotel portfolio sale scrapped

Anbang’s $5.8B hotel portfolio sale scrapped
CEO Andrew Miller and clockwise from top left: JW Marriott Essex House in New York, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole

Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report

Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report
Waldorf Astoria - Crown on Park Avenue

Condo sales launch at Waldorf Astoria in crowded luxury market

Condo sales launch at Waldorf Astoria in crowded luxury market
Renderings of Waldorf Astoria

Inside the Waldorf Astoria’s condo conversion

Inside the Waldorf Astoria’s condo conversion
Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal
arrow_forward_ios

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

Loading...