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China: New offer could derail Marriott-Starwood merger

By  |  March 14, 2016

A group of Chinese investors is trying to buy two major hotel chains at the same time — an effort that could derail the planned merger of the Marriott and Starwood.

The two chains, which reached a deal to create the world’s largest hotel chain in November, both said Monday that Chinese investors have made a richer offer for Starwood.

The new offer comes from a group led by Waldorf Astoria owner Anbang Insurance Group, according to Marriott’s statement.

Separately, Anbang is close to announcing a $6.5 billion deal to buy Strategic Hotels, according to a source familiar with that deal. Strategic Hotels was bought by The Blackstone Group just three months ago for about $6 billion, including debt.

The Chinese investors made an unsolicited $13 billion bid for Starwood last week, which tops the $11 billion cash and stock offer from Marriott agreed to in November. Marriott and Starwoods shareholders had been due to vote on the deal at the end of this month.

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