Acquisitions

Hotel market: a Bang in the bidding war

The US group Marriott is on the verge of me to their Hotels, to the market leader. In the bidding battle for the U.S. chain Starwood, Chinese buyers withdrew as a surprise.

The Chinese insurer status, to anbang had only increased this week its offer for Starwood. 14 billion dollars wanted to pay the Chinese for the operators of Hotels such as Sheraton and Westin. Your backing out on the grounds with a “different market considerations”.

According to media reports, the Chinese insurance would be able to have supervision objection to the Acquisition. The newspaper “Financial Times”, according to which investors were able to provide proof of sufficient funding.

Acquisition Object Starwood

Prior to the last offer by status, to anbang Starwood had already accepted an offer from Marriott in the amount of about 13 billion US dollars. Now shareholders of both sides will decide within a week about the merger.

It would then be the world’s largest Hotel group, with an area of 5,700 houses and 1.1 million rooms. Include Marriott hotel operators such as Ritz-Carlton, Renaissance and Courtyard already.

Takeover fantasies with obstacles

Observers evaluated the rejection of status, to anbang as a setback in the attempts of Chinese companies to buy shares in companies in the United States. A Takeover by Starwood, by status, to anbang would have been the largest business of this kind.

Had such a takeover attempt, the Chinese leadership encouraged the corporations in the country. Status, to anbang bought 2014 already the famous Waldorf-Astoria Hotel in New York for almost two billion dollars. In March of this year, status, to anbang also agreed with the financial investor Blackstone for the purchase of the chain of Strategic Hotels & Resorts for $ 6.5 billion.

Starwood operates nearly 1,300 Hotels in 100 countries. Marriott with of 4,400 houses estimates of the cost savings from the merger to $ 250 million a year.

Actually, Marriott, and Starwood had already in November 2015
a merger is agreed, which should be completed in mid-2016. In mid-March, the tenderer group status, to anbang with a higher offer to Purchase, in between, a moment had, however.

ar/bea (rtr, dpa)