Marriott International Offers $13.6 Billion For Starwood Hotels, Trumps Anbang’s Offer

Days after China’s Anbang Insurance made a $12.8 billion offer for the Starwood Hotels group, Starwood Hotels has reaffirmed that it will be selling to Marriott International, who have upped their offer for the chain of hotels.

The Background

American hospitality chain Starwood Hotels and Resorts announced that they would be selling their chain of resorts, hotels, spas and other properties across the world last year.

The brand manages a range of upscale hotels world over including the Westin Hotels, the Sheraton Hotels, Four Points by Sheraton and the St Regis Hotels. As of December 2014 they managed over 1,200 properties worldwide.

Anbang versus Marriott International

Up until last week, Starwood had confirmed that it would be selling the brand and properties to Marriott International, another American hospitality company that has 4,400 properties across 87 countries.

However, on March 15^th, Chinese Insurance group Anbang trumped Marriott International’s original $12.2 billion offer with an offer of $12.8 billion.

In response, Marriott International upped their offer and will now pay Starwood Hotels an estimated $13.6 billion in cash and stock.

The companies announced the deal in a joint statement saying “The companies have signed an amendment to their definitive merger agreement that creates the world’s largest hotel company.”

Meanwhile, Anbang representatives have declined to comment.