Will this be the same company in about a week?
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Starwood Hotels & Resorts Worldwide Inc. on Wednesday reported a better-than-expected third-quarter profit and said it will sell its vacation unit for $1.5 billion.
Under the proposed agreement, Hyatt would take control of the combined company.
Reports have surfaced this week that three companies, including Hyatt, are bidding to acquire Starwood Hotels & Resorts.
As for earnings, Starwood reported an in-line third-quarter print, with revenues of $1.43 billion coming in just short of the $1.44 billion consensus estimate and earnings per share of 74 cents beating consensus of 72 cents.
Earlier this month, Reuters reported that cruise operator Carnival was planning to launch a Chinese cruise line in a US$4 billion joint venture with two Chinese firms.
At midday, Starwood shares were up 5% to $78.52.
“My hunch is [Hyatt] would be able to [buy Starwood]”. Revenue declined 18% to $964 million.
Then, in 2014, the Malloy administration announced a $25 million package combining more tax credits and a loan offered to encourage Starwood to increase its presence in Stamford to 1,320 workers. It could be the largest takeover of a USA company by a Chinese firm, the Journal said. Together, we will continue to add to the bespoke luxury experience that the award-winning hotel has always been famous for and further strengthen the hotel’s appeal within the region and beyond.
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Starwood’s properties include the Sheraton, Westin and W hotel chains. The stock gained nearly 6 percent in midday trading. The transaction has a total value to Starwood of approximately $1.5 billion. Jin Jiang global (Holdings) Co., HNA Group Co. and China Investment Corp. have all applied for approval from the Chinese government. (NYSE: HLT) and Marriott worldwide Inc.
