The Chinese insurer Anbang Insurance Group has proven that its $1.95 billion acquisition of the Waldorf Astoria New York last year was only the beginning of its investment into U.S. hospitality.
Earlier today, Starwood Hotels & Resorts Worldwide announced that Anbang outbid Marriott International with a $13.2 billion offer for the hotel monolith—or roughly $78 per share, as CNBC first reported. The insurance giant is partnering with J.C. Flowers & Co. and China-based Primavera Capital Group to provide Starwood with a fully-financed proposal.
Marriott said in a statement that it has until March 28 to propose a higher buy-out, and if the deal falls through Starwood is required to pay a termination fee of $400 million in cash to its former suitor. Marriott, which announced the original deal to merge with Starwood in November 2015, had offered $76 per share.
“Marriott is in the process of reviewing the Anbang consortium’s proposal and is carefully considering its alternatives,” according to the statement.
Industry experts say that the new deal makes sense, and not just from Starwood’s perspective.
“The new offer should be better for [Starwood Preferred Guest] members,” Marc Magazine, an executive managing director of the hospitality group at Savills Studley, said through a spokeswoman. “It will be better for Starwood owners to keep their brands separate from Marriott...”Anbang Outbids Marriott With $13.2B Offer for Starwood
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National Office Sector Report (Q4 2015)