The Chinese insurance company Anbang Group has offered to acquire Starwood Hotels and Resorts Worldwide for $78 per share in cash, or the equivalent of $13.3 billion. Last November 17, Starwood had agreed to merge with Marriott International through a stock-and-cash deal valued at $13.06 billion as of Thursday’s close. That merger would have created the world’s largest hotel company.
The Wall Street Journal and other news outlets report that Starwood intends to set aside its deal with Marriott, which has until March 28 to revise its offer. If it ultimately accepts Anbang’s bid, Starwood would have to pay Marriott a $400 million termination fee. The Real Deal, which covers New York real estate, reports today that Starwood had accepted Anbang’s takeover offer
Anbang, based in Beijing, made headlines two years ago when it paid about $2 billion to acquire New York City’s landmark Waldorf Astoria hotel. Days before it upped its bid for Starwood from $76 per share, Anbang agreed to purchase the 16- property Strategic Hotels & Resorts from Blackstone Group for $6.5 billion including debt.
Time magazine’s Rana Foroohar notes that Anbang’s buying spree comes at a time when investors have been fleeing China’s slowing economy. About $1 trillion in capital left China last year, and “one way it’s going out the door is via acquisitions of foreign firms,” Foroohar writes. Dealogic estimates that Chinese firms spent $106 billion on overseas acquisitions in 2015, and nearly that much so far this year.
Anbang’s well-connected owner, Wu Xiaohui, is married to the granddaughter of Deng Xiaoping, the Communist leader who put China on a path toward a more market-driven economy. Anbang’s largest shareholders are state-owned companies such as Shanghai Automotive Industry Group Corp and the oil giant Sinopec Group, according to Fortune magazine.
The Real Deal estimates that Anbang’s offers for Strategic and Starwood are roughly equal to the total volume of Chinese investment in U.S. commercial real estate from 2007 to 2015.
Related Stories
Adaptive Reuse | Mar 30, 2024
Hotel vs. office: Different challenges in commercial to residential conversions
In the midst of a national housing shortage, developers are examining the viability of commercial to residential conversions as a solution to both problems.
Adaptive Reuse | Mar 26, 2024
Adaptive Reuse Scorecard released to help developers assess project viability
Lamar Johnson Collaborative announced the debut of the firm’s Adaptive Reuse Scorecard, a proprietary methodology to quickly analyze the viability of converting buildings to other uses.
Products and Materials | Feb 29, 2024
Top building products for February 2024
BD+C Editors break down February's top 15 building products, from custom-engineered glass bridges to washroom accessories.
Designers | Feb 23, 2024
Coverings releases top 2024 tile trends
In celebration of National Tile Day, Coverings, North America's leading tile and stone exhibition, has announced the top 10 tile trends for 2024.
Mixed-Use | Jan 29, 2024
12 U.S. markets where entertainment districts are under consideration or construction
The Pomp, a 223-acre district located 10 miles north of Fort Lauderdale, Fla., and The Armory, a 225,000-sf dining and entertainment venue on six acres in St Louis, are among the top entertainment districts in the works across the U.S.
Industry Research | Jan 23, 2024
Leading economists forecast 4% growth in construction spending for nonresidential buildings in 2024
Spending on nonresidential buildings will see a modest 4% increase in 2024, after increasing by more than 20% last year according to The American Institute of Architects’ latest Consensus Construction Forecast. The pace will slow to just over 1% growth in 2025, a marked difference from the strong performance in 2023.
Hotel Facilities | Jan 22, 2024
U.S. hotel construction is booming, with a record-high 5,964 projects in the pipeline
The hotel construction pipeline hit record project counts at Q4, with the addition of 260 projects and 21,287 rooms over last quarter, according to Lodging Econometrics.
Sponsored | BD+C University Course | Jan 17, 2024
Waterproofing deep foundations for new construction
This continuing education course, by Walter P Moore's Amos Chan, P.E., BECxP, CxA+BE, covers design considerations for below-grade waterproofing for new construction, the types of below-grade systems available, and specific concerns associated with waterproofing deep foundations.
Giants 400 | Jan 2, 2024
Top 80 Hotel Construction Firms for 2023
Suffolk Construction, STO Building Group, PCL Construction Enterprises, AECOM, and Brasfield & Gorrie top BD+C's ranking of the nation's largest hotel and resort general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Jan 2, 2024
Top 70 Hotel Engineering Firms for 2023
Jacobs, EXP, IMEG, Tetra Tech, and Langan top BD+C's ranking of the nation's largest hotel and resort engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.