Tuesday, September 2, 2025
23.9 C
Lagos

Marriott Wins Starwood Hotel Fight with $14.4bn Bid

According to report by AP, Marriott won over Starwood with a sweetened bid worth more than $14.4 billion just days after a Chinese insurance company appeared to steal it away from the hotel chain with a more lucrative offer.

The buyout, which may still be contested by China’s Anbang, would create the world’s biggest hotel company and give Marriott a stable of tony properties run by Starwood, like the St. Regis New York.
Starwood, which owns Sheraton, Westin and St. Regis, over the weekend, became the first U.S. hotel operator to gain access to Cuba, a day before the arrival of President Barack Obama.

It is the first visit to Cuba by a sitting president in almost 90 years as relations between the two nations thaw.

The revised deal would give Starwood shareholders $21 in cash and 0.80 shares of Marriott International Inc. Class A stock for each Starwood share. Starwood shareholders are also expected to get Interval Leisure Group stock valued at $5.83 per share. Taken together, that would value Starwood stock at $85.36 per share, or about $14.41 billion.

Marriott has more than 4,400 properties in 87 countries and territories, under brands such as Ritz-Carlton, Residence Inn and Marriott. Starwood has nearly 1,300 properties in about 100 countries.

Just days ago, Anbang put up an offer of $83.83 for each Starwood share or approximately $14.15 billion. Starwood stockholders would have received $78 in cash for each share they own plus $5.67 in stock for a spinoff of a vacation business.

Anbang made a dramatic entry into the U.S. two years ago when it bought the famed Waldorf Astoria of New York for almost $2 billion.

Days before it contested Marriott for control of Starwood, it laid down $6.5 billion to acquire Strategic Hotels & Resorts Inc., which owns several high-end properties including the JW Marriott Essex House in New York and Hotel Del Coronado in San Diego.

Starwood, based in Stamford, Connecticut, offered a unique opportunity for Marriott because the hotel chain put itself up for sale.

Marriott said yesterday that it is confident that it can achieve $250 million in annual cost savings within two years of closing on the Starwood transaction. That’s $50 million more than in estimated in November, when it gave its initial offer to Starwood.

Marriott and Starwood still anticipate the deal closing around mid-year, assuming it receives the necessary approvals.

Anbang, or any other suitor, has until April 8 to top Marriott’s bid.

spot_img
spot_img

Hot this week

Ecobank Nigeria @ 40: Group Unveils N60m in Cash Rewards Program for Customers

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

GOCOP 2025: Conference on Governance Challenges, Prospects Set for October 9

The Guild of Corporate Online Publishers (GOCOP) has announced...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

Northwest: The Lion’s Share of Tinubu’s Projects

By Tanimu Yakubu Director-General Budget Office of the Federation The Lagos Illusion The...

From Devaluation to Domination: How Tinubu’s Exchange Rate Reforms Turned the Naira into Nigeria’s Export Engine

By Tanimu Yakubu When President Bola Ahmed Tinubu’s administration...

Topics

CBN Dissolves, Appoints New CEOs, EDs for Union, Keystone, Polaris Bank

The Central Bank of Nigeria (CBN) has dissolved the...

Business Journal 10th Anniversary Pix

L-R:  Prof. Akpan Ekpo, Director-General, West African Institute for Financial...

NIA Chiefs at 23rd Nigerian Economic Summit 2017

R-L: Mr. Eddy Efekoha, Chairman, Nigerian Insurers Association (NIA)...

NHIA DG: Health Insurance Now Covers 20m Nigerians

The National Health Insurance Authority (NHIA), says it has...

SHIN Visits NCDMB, Gets Assurances of Support for Oil Industry Projects

Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB),...

Buharinomics: 4 CEOs Examine Opportunities for Private Sector

The swearing in of Nigeria’s new president Muhammadu Buhari has led to renewed optimism regarding economic progress in the country and new opportunities for the private sector, particularly in infrastructure development, consumer and financial services sectors. Four prominent businessmen, visiting Cape Town, South Africa for the World Economic Forum 2015, discussed the economic outlook for Nigeria under its new government at a breakfast hosted by RMB Nigeria. Christian Wessels, Deputy Group Managing Director of TGI Group, a leading Nigerian conglomerate, is confident that a more entrenched democracy has been established in Nigeria and sees the greatest opportunities in providing appropriate goods and services to a population of 175 million people.

President Buhari Rules Out Devaluation

Recent comments by President Buhari appear to rule out...
spot_img

Related Articles

Popular Categories

spot_imgspot_img