In November 2015, Marriott International agreed to acquire Starwood Hotels & Resorts. On Friday, March 18, Starwood Hotels released a statement it has notified Marriott of its intention to terminate the merger agreement. Instead, Starwood Hotels is making a deal with a Chinese insurance firm.
Starwood praised China’s Anbang Insurance Group Co. and its partners’ offer as superior to Marriott’s original offer:
“Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) (“Starwood”) today announced that it has received a revised binding and fully financed proposal from a consortium consisting of Anbang Insurance Group Co., Ltd., J.C. Flowers & Co. and Primavera Capital Limited (the “Consortium”), that the Starwood Board of Directors, in consultation with its legal and financial advisors, has determined constitutes a “Superior Proposal,” as defined in Starwood’s merger agreement with Marriott International, Inc. (NASDAQ: MAR) (“Marriott”).”
Anbang is setting itself up as a big investor in U.S. hotel properties. The firm previously acquired the Waldorf Astoria in Manhattan for $1.95 billion.
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Andrea Waitrovich is editor of IREN and web content editor of Institutional Real Estate, Inc.
