We'll know by the end of the day how seriously all three parties are considering the new offer.
What to Know Now
Just when you thought the Marriott-Starwood deal was in the books, it seems that a new challenger has appeared. The new bid comes from Anbang Insurance, the same group that scooped up the Waldorf Astoria in New York City and that is making other strategic hospitality investments.
Whether the Marriott-Starwood deal is too far down the pipeline is still a bit murky. Under the currently forming agreement, Starwood CAN consider other offers, but that period ends today. There’s also a $400 million breakup fee tied to the current deal falling apart.
Either way, the challenge may show that Starwood was a hotter property than many previously thought and that the Chinese are serious players in the industry. Today should be an interesting day for Starwood and Marriott.
Social Quote of the Day
“Suddenly, this new company comes in and re-evaluates the price of hotels. It’s not like we’re building a lot of new hotels. That’s one of the things that made this deal so special. It’s not like there’s this resurgence of hotel building. There’s a scarcity. I like this deal from Anbang.”
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Photo credit: The W Hotel along Barcelona's Barceloneta beach. Oh Barcelona / Flickr.com