Beijing’s Anbang Insurance Group leads a team that has offered $13 billion cash for Starwood Hotels & Resorts Worldwide, beating Marriott’s offer by almost 15%. The consortium, which also includes US private equity firm J.C. Flowers & Co and China’s Primavera Capital, is worth $78 per share, trumping Marriott by $10 a share.
Marriott only has until March 28 to better the offer that it originally agreed in November, Reuters reports. Anbang is one of many Chinese investors eager to snap up assets outside of mainland China, which is seeing its economy slow down after decades of rapid growth.
Anbang already has a track record of hotel investments, as it bought the iconic Waldorf-Astoria in New York from Blackstone last year for $1.95 billion. It also has offices in the US and is unlikely to make any changes to the Starwood brands if its deal succeeds, although it may seek to make some of them more attractive to the growing number of Chinese visitors.
Starwood’s 11 brands include iconic upscale chains including W Hotels, Sheraton and St Regis as well as mid-range names such as Aloft. Marriott’s portfolio includes Bulgari, Ritz-Carlton and Courtyard and if it comes back with another bid, the combined company would be the world’s largest hotel chain. One minor consideration for Starwood will be the $400 million fee it will have to pay to Marriott if it walks away in favour of the new bid.