Marriott said it still intends to merge with Starwood, but that it has granted Starwood a waiver to consider the new offer until Thursday.
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The transaction marks a deeper push into U.S. hotels for Beijing-based Anbang, which a year ago purchased New York’s landmark Waldorf Astoria.
Anbang, which remains largely unknown to most Americans, has quickly positioned itself to become a major player in the US hotel industry.
Marriott’s stock also traded up at $70.67, about 2.6% above Friday’s closing price, in a 52-week range of $56.43 to $85.00.
“Marriott International today reaffirmed its commitment to acquire Starwood Hotels & Resorts Worldwide to create the world’s largest hotel company”, Marriott said in a statement Monday. Starwood would have to pay Marriott a $400 million termination fee in cash if it made a decision to enter into another deal or changes or withdraw its recommendation to its stockholders to vote in favor of the Marriott deal.
Blackstone is selling Strategic Hotels & Resorts, which owns 16 properties including the Four Seasons resorts in Arizona and Wyoming, just three months after buying the company themselves. The new offer, on top of $76 per share in cash, also includes stock considerations valued at $5.50 per share. Starwood said it will examine the offer.
The acquisition of Strategic Hotels & Resorts Inc. will give the Chinese company ownership of prized properties all around the country.
“U.S. trophy assets continue to be in high demand by offshore investors, both Asian and Middle Eastern, Gilda Perez-Alvarado of Jones Lang LaSalle Inc. told Bloomberg”.
“It’s a great long-term play for Anbang and a good short-term move by Blackstone”, said Sonny Kalsi, a founder and partner of GreenOak Real Estate, a private equity firm that manages more than US$6 billion.
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China Vanke Co Ltd, the mainland’s biggest property firm, signed a deal worth up to $9.3 billion that could make subway operator Shenzhen Metro Group its biggest investor, intensifying a battle for control between Vanke’s management and biggest current shareholder, financial conglomerate Baoneng. Anbang bought the New York Waldorf Astoria in October 2014 for $2 billion.
