Hotels

China’s Anbang offers Starwood US$14 billion

Greg Roumeliotis and Mike Stone - RAW

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.



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Tourists stranded as Europe’s rivers continue to drop

Water levels across Europe’s rivers continue to plague cruise operators with reports of marooned boats on the Doubs River.

Share

CommentComments

Hotels

Midweek Interview

Midweek catch-up with Italian hotelier Gai Quartucci

This week, we sat down with Gai Quartucci, global sales and marketing director for part of the Small Luxury Hotels of the world group.

Share

CommentComments

Travel Agents

Malaysia Airlines launches free trip incentive for agents

This incentive is like a buy one, get one free, except instead of buying something, you’ve got to sell airfares… which is likely your job anyway so win-win.

Share

CommentComments

Hotels

Ennismore to bring four new lifestyle hotels to NZ

Accor’s quirky stepchild is spreading its wings across the Pacific with four new signings in New Zealand.

Share

CommentComments

Events

Missed the Visit USA Expos? Fear not, we’ve got your biggest questions covered.

by sponsored by Visit USA Australia

No more FOMO! These hot tips will get you in top-tip shape to visit the USA.

Share

CommentComments

Aviation

Jetstar launches Sunny Coast sale with fares cheaper than a tank of petrol

With prices this low, Jetstar will have to steal Bunnings’ famous tagline. Hopefully they’ll start hosting sausage sizzles as well.

Share

CommentComments

Hotels

Hotel Review: La Sultana is an oasis among the chaos of Marrakech

by Nancy Hromin

A peaceful hideaway right in the centre of the Medina’s hustle and bustle, La Sultana is an oasis among the chaos of Marrakech – a chaos we absolutely loved.

Share

CommentComments

News

Aussie travel start-up Ok Away partners with Air Doctor

While it is a cool name, Ok Away also sounds like a good way to end a sentence with someone you wish would leave you alone.

Share

CommentComments

Aviation

“It’s a shocking insult”: Qantas slammed for asking execs to work as baggage handlers

The bags on your next flight may be handled by Alan Joyce, which may or may not be a good thing depending on your confidence in his ability to fling around 30 kg bags.

Share

CommentComments

Destinations

Travellers warned over bomb threats against Moldova’s international airport

The government’s travel alert website is advising Aussies to reconsider their need to travel to Moldova, which, given the bomb threats, is probably sound advice.

Share

CommentComments

Cruise

Intrepid launches citizen science programs in Antarctica

Believe it or not, there is more than one program about understanding phytoplankton (which are a lot more important than you would think)!

Share

CommentComments

Hotels

IHG celebrates 60 years with big surprises + Tim Tam cake

The brand is celebrating its Diamond anniversary with a series of events and surprises for guests, but honestly, they had us at “Tim Tam”.

Share

CommentComments