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Sweetened Bid Puts Hotel Mega-Merger Back On Track

BETHESDA, MD—However, the revised merger agreement between Marriott and Starwood Hotels doesn't mean an Anbang-led group won't come back with a higher bid, continuing the Chinese insurer's buying spree in the US.

By Paul Bubny | paulbubny | Updated on March 21, 2016

Marriott CEO Arne Sorenson The two brands are now “more confident” of achieving a cost synergies target, says Sorenson.

BETHESDA, MD—Marriott International wasted little time coming back with a sweetened offer to merge with Starwood Hotels & Resorts Worldwide, creating the world’s largest lodging company. The two hotel operators said Monday they had signed a revised merger agreement, just three days after the Starwood board accepted an all-cash bid from a consortium led by Anbang Insurance Group Co. Ltd. That bid is no longer under consideration, Marriott and Starwood said Monday.

The revised merger agreement values Starwood at $13.6 billion, not including its timeshare business, compared to $13.2 billion from the Anbang consortium. The previously announced spin-off of Starwood’s timeshare unit, Vistana Signature Experiences, and Vistana’s merger with Interval Leisure Group will give Starwood shareholders an additional $5.83 per share.

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