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

Miami /
Mar.March 22, 2016 10:30 AM

From the New York website: 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
Starwood CEO Barry Sternlicht, InTown Suites CEO Ash Kapur and 1071 NE 28th Avenue in Homestead (Getty, Google Maps)

Starwood scores $265M refi for portfolio of InTown, Uptown hotels

Starwood scores $265M refi for portfolio of InTown, Uptown hotels
From left: David Martin, Barry Sternlicht, Don Ghermezian, and Pedro Garcia

Triple Five, Terra, Starwood sue Miami-Dade property appraiser over tax bills

Triple Five, Terra, Starwood sue Miami-Dade property appraiser over tax bills
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
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
Daily Digest Miami

How Epstein hid ownership of second island, CK Holding Group buys Miramar retail: Daily digest

How Epstein hid ownership of second island, CK Holding Group buys Miramar retail: Daily digest
arrow_forward_ios

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

Loading...