KAILUA-KONA — The bidding war for Starwood Hotels & Resorts — operator of Sheraton Kona Resort Spa at Keauhou Bay — continues.
KAILUA-KONA — The bidding war for Starwood Hotels & Resorts — operator of Sheraton Kona Resort Spa at Keauhou Bay — continues.
Starwood Hotels & Resorts Worldwide, which operates 11 properties in Hawaii, including one Hawaii Island property in Keauhou, said Monday that a new offer from China’s Anbang Insurance Group Co. is “reasonably likely” to lead to a “superior proposal” trumping Marriott International Inc.’s bid submitted last week. Starwood is owner of brands such as Sheraton, Westin, W and St. Regis.
The latest offer from Anbang is worth $88.66 per Starwood share, or about $14 billion, topping Marriott’s $13.6 billion offer. Anbang previously offered a cash bid of $78 a share, or about $13.2 billion.
Starwood’s board said it has not changed its recommendation in support of Starwood’s merger with Marriott, according to a media statement issued Monday by Starwood.
On Monday, Marriott also reaffirmed its commitment to acquire Starwood Hotels, noting Marriott is “confident that the previously announced amended merger agreement is the best course for both companies.”
The company also advised Starwood stockholders to give serious consideration to the question of whether the Anbang-led consortium will be able to close the proposed transaction, with a particular focus on the certainty of the consortium’s financing and the timing of any required regulatory approvals. Marriott declined to elaborate in its media statement, noting the company would have “no additional comment until further developments occur.”
Marriott and Starwood stockholders are expected to vote on the proposed merger April 8.
Starwood Hotels and Resorts Worldwide accepted last Monday an improved takeover offer from Marriott International Inc., proceeding with plans to form the world’s largest hotel operator after investors led by Anbang sought to thwart a November 2015 deal.
Marriott made no indication that it would submit a higher bid following news of Anbang’s new offer.
Jean Dickinson, Hawaii area director of communications for Starwood Hotels and Resorts, told West Hawaii Today last week that the proposed merger with would no affect “associates and teams at the property levels,” and that the Keauhou-based hotel would continue to operate as normal.
The same is the case for the company’s 10 other properties across the state, she said.
A combination of Starwood and Marriott would create the world’s largest hotel company, with about 30 brands, giving it more leverage in negotiating commissions with travel agents, a larger frequent-guest program and cost savings. Marriott said it expects to save about $250 million a year with the merger. The cost savings estimate increased by $50 million a year from the initial one made in November.
Bloomberg News contributed to this report.