China’s Anbang offers Starwood US$14 billion

China’s Anbang offers Starwood US$14 billion

China’s Anbang Insurance Group Co has raised its offer for Starwood Hotels & Resorts Worldwide Inc to almost $US14 billion ($A18.64 billion) in its latest challenge to the US hotel operator’s merger with Marriott International Inc.

The bidding war for Starwood has pitted Marriott’s ambitions to create the world’s largest lodging company with about 5700 hotels against Anbang’s drive to create a vast portfolio of high-yielding US real estate assets.

The acquisition of Starwood, owner of the Sheraton and Westin brands, by Anbang would be the largest ever by a Chinese company in the United States.

Anbang’s consortium, which includes private equity firms J.C. Flowers & Co and Primavera Capital Ltd, has offered $US82.75 per share in cash, in what is reasonably likely to be superior to Marriott’s deal, Starwood said on Monday.

Marriott’s latest cash-and-stock offer, which was announced on March 21, is currently worth around $US78 per share.

Starwood’s board has not yet changed its recommendation to its shareholders in support of the company’s merger with Marriott, Starwood said.

A vote for Starwood shareholders is scheduled for April 8.

Marriott declined to say if it would lift its offer but said it was confident the amended merger agreement with Starwood is best for both companies.

Starwood shares were trading up 2.54 per cent at $US84.20, while Marriott shares were up 4.1 per cent to $US71.46, as some investors hoped Anbang’s move would prompt it to walk away from an expensive deal.

Anbang’s latest offer values Starwood at 13.5 times earnings.

By comparison, peers Hyatt Hotels Corp and Hilton Worldwide Holdings Inc are trading at around ten times earnings.

To be sure, the Anbang offer is still cheaper than some of large real estate deals seen in the run-up to the 2008 financial crisis.

Buyout firm Blackstone Group LP’s $US26 billion leveraged buyout of Hilton in 2007 valued that company at 15 times earnings.

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]