Marriott strikes back: Starwood accepts new $13.6B bid

Anbang bid $13.2B last week, topping Marriott’s original $12.2B offer

TRD LOS ANGELES /
Mar.March 21, 2016 02:30 PM

From the New York website: The bidding war for Starwood Hotels & Resorts may finally have come to an end.

The hospitality giant accepted a new, juiced-up takeover offer from Marriott International, totaling about $13.6 billion, the Wall Street Journal reported.

Marriott’s is a counterbid; it follows news last week that Beijing-based Anbang Insurance Group – which recently bought 16 hotels from the Blackstone Group, and owns the Waldorf Astoria hotel – had offered $13.2 billion, or $78 per square, a billion higher than the figure Marriott and Starwood agreed to in November, and about $370 million above its own bid earlier in the week.

Under the new deal, Starwood’s shareholders will get $21 in cash and 0.8 shares of Marriott for every Starwood share they own, valued at Friday’s closing price of $79.53. After the merger, Starwood’s shareholders will own about a third of the combined entity, which will be the world’s largest hotel chain.

Anbang – a massive insurance firm international ambitions and ties to the Chinese state – paid $6.5 billion last month to the Blackstone Group for the 16-property Strategic Hotels & Resorts portfolio, which included the JW Marriott Essex House at 160 Central Park South. [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
Marriott Moxy hotel set for Oakland thanks to EJF Capital’s Opportunity Zone fund

Marriott Moxy hotel set for Oakland thanks to EJF Capital’s Opportunity Zone fund

Will Trump reverse thawing US business relations with Cuba?

Will Trump reverse thawing US business relations with Cuba?

Placeholder image

Anbang closes on acquisition of Essex House, 14 Strategic properties

Marriott closes on $13B Starwood purchase

Marriott closes on $13B Starwood purchase

Marriott CEO: Expect “tens of billions in Chinese investment” in US hotels

Marriott CEO: Expect “tens of billions in Chinese investment” in US hotels

Despite opposition, the Aloft hotel will rise in Glendale

Despite opposition, the Aloft hotel will rise in Glendale

Chinese regulators to investigate Anbang amid real estate push

Chinese regulators to investigate Anbang amid real estate push

Starwood to open Aloft Hotel in El Segundo

Starwood to open Aloft Hotel in El Segundo

arrow_forward_ios