March 21, 2016
Days after reaching a $6.5 billion deal with Blackstone to take over Strategic Hotels & Resorts, Anbang Insurance Group Co. of China has upped the ante to buy Starwood Hotels & Resorts Worldwide Inc. Starwood, which owns brands including Westin, Sheraton and W., indicated it plans to accept the Beijing company’s $13.2 billion takeover bid.
Starwood, headquartered in Stamford, CT, had agreed in November to a takeover bid of $12.2 billion from Marriott International. This would have made the resulting company one of the largest hotel operators in the world. Marriott’s bid, however, is a cash-and-stock deal, whereas the Anbang offer is all cash. Starwood has given Marriott until March 28 to renegotiate. But analysts believe although Marriott will increase its offer, it likely won’t match that of Anbang’s.