Investor group launches surprise bid for Starwood Hotels

Miami /
Mar.March 14, 2016 01:30 PM

From the New York website: 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
South Beach Miami (Credit: iStock)
Miami hotels prepare for layoffs and other budget cuts as occupancy plummets
Miami hotels prepare for layoffs and other budget cuts as occupancy plummets
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca
Blackstone sells Marriott hotel in Boca Raton
Blackstone sells Marriott hotel in Boca Raton
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
Hyde Beach House Resort & Residences, Carlos Rosso and Drew Sims
Sotherly closes on acquisition of Hyde Beach House hotel space
Sotherly closes on acquisition of Hyde Beach House hotel space
West Palm Beach Marriott (Credit: iStock)
Marriott family sells West Palm hotel for $50M
Marriott family sells West Palm hotel for $50M
A conceptual rendering and Lon Tabatchnick
Margaritaville developer plans another Hollywood hotel despite opposition
Margaritaville developer plans another Hollywood hotel despite opposition
Daniel Rutois and Hyde Resort and Residences
Hyde Resort & Residences association strikes back at Sotherly Hotels
Hyde Resort & Residences association strikes back at Sotherly Hotels
Daniel Rutois and Hyde Resort and Residences
Sotherly Hotels sues Hyde Resort & Residences association president
Sotherly Hotels sues Hyde Resort & Residences association president
arrow_forward_ios

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

Loading...