Anbang-led consortium raises offer for Starwood

According to a statement, the US hotel group said the offer was likely to lead to a superior proposal as negotiations continue in the hotly contested bidding process. It follows an amended offer by Marriott International last week that valued the company at $13.6 billion.

The Anbang consortium - which includes J.C. Flowers & Co and Primavera Capital - had previously offered $76 per share, or $13.1 billion, for Starwood, prompting the company to terminate an earlier agreement with Marriott for $71 per share. The latest Anbang offer allows Starwood shareholders to receive additional consideration in the form of Interval Leisure Group stock as part of a spin-off of vacation ownership business Vistana Signature Experiences. This would bring the offer value to $88.66 per share.

As of the end of 2015, Starwood managed about 180,000 employees across 1,297 properties in around 100 countries. The majority of these hotels are managed on behalf of third-party owners or franchised out. A total of 317 properties are in the Asia Pacific region, with 159 in Greater China alone.

Starwood posted $1.3 billion in revenue in 2015, down from $1.5 billion the previous year. Net profit dropped from $643 million to $489 million over the same period.

Anbang's increasing activity in the hospitality sector has included the purchase of Strategic Hotels & Resorts earlier this month from the Blackstone Group for $6.5 billion as well as the $1.9 billion acquisition last year of New York's Waldorf Astoria hotel.

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• Topics
• Greater China
• Buyouts
• Real estate
• China
• J.C. Flowers & Co.
• Primavera
• USA