. Earth Science News .
TRADE WARS
China's Anbang in huge US hotel buying spree
by Staff Writers
New York (AFP) March 14, 2016


China's Anbang Insurance is on a shopping spree in the US hotel sector, with a nearly $13 billion offer for Starwood and the $6.5 billion purchase of 16 luxury properties from Blackstone.

Anbang, which made headlines in 2014 when it acquired the New York landmark Waldorf Astoria Hotel, is leading a consortium that has offered to buy Starwood Hotels & Resorts Worldwide, threatening Marriott International's already-agreed takeover of the company.

Starwood said on Monday it had received the $76 per share unsolicited offer, worth $12.8 billion, on March 10, topping Marriott's $63.74 per share cash-and-stock offer that Starwood had accepted last November.

Anbang is the leader in the consortium that includes China-based Primavera Capital and US private equity investor JC Flowers & Co., a person close to the matter told AFP on Monday.

As news broke about Anbang's move on Starwood, a source confirmed the Chinese insurer is buying Strategic Hotels & Resorts for $6.5 billion from The Blackstone Group, which bought the US luxury hotel group just three months ago.

Anbang and Blackstone have signed a firm agreement and the transaction could be announced in the coming days, a person with knowledge of the situation told AFP on Monday.

Anbang declined to comment on the consortium's offer for Starwood, owner of the Westin and W brands, among others. Starwood has some 1,270 properties in 100 countries.

Starwood said in a statement that its board of directors "has not changed its recommendation in support of Starwood's merger with Marriott."

The Stamford, Connecticut-base company said that it "will carefully consider the outcome of its discussions with the consortium in order to determine the course of action."

- Marriott undeterred -

Marriott, meanwhile, issued a statement saying it "reaffirmed its commitment to acquire Starwood Hotels & Resorts Worldwide, Inc. to create the world's largest hotel company."

Marriott has more than 4,400 properties in 87 countries and territories, with a portfolio of brands including The Ritz-Carlton, JW Marriott and Gaylord Hotels.

Marriott said it had been notified by Starwood of the unsolicited bid from a group led by Anbang on March 11, and had granted Starwood a waiver to consider the offer, which expires a minute before midnight on March 17.

Marriott pointed out the Anbang offer was "highly conditional and non-binding," while it had sufficient cash resources for its own bid and there was no financing contingency in the deal.

Marriott shareholders were scheduled to meet March 28 to vote on the Starwood acquisition. The Bethesda, Maryland-based company noted that if Starwood withdraws from the agreement it must pay Marriott a $400 million break-up fee.

Starwood shares jumped 7.8 percent on Monday to close at $75.93, and Marriott gained almost 3.0 percent at $70.93.

Though both Starwood and Marriott signaled Monday their preference for their tie-up, the larger offer from Anbang could sway shareholders, said Ryan Meliker of Canaccord Genuity.

"We believe it would be very difficult for the board to turn down a $76 cash offer for the hotel business, given the disparity in value vs. MAR's (Marriott's) deal," he said in a client note.

Meliker pointed out that cancellation of the tie-up would deal a tough blow to Marriott, which is counting on the merger to support its expansion, especially in China, India and Europe, regions where Starwood has a strong presence.

Anbang, which once specialized in car insurance, stormed onto the international property market in October 2014 by acquiring the famous Waldorf Astoria Hotel in Manhattan for nearly $2 billion from Hilton Worldwide Holdings.

The purchase of Strategic will bring it 16 upscale hotels and resorts in the US, including the JW Marriott Essex House in Manhattan and the Hotel Del Coronado in San Diego.

Including assumed debt in the deal, Blackstone paid about $6 billion for Strategic, a real estate investment trust, in December.

The Anbang group, which has $253 billion in assets, recently forayed into Canada. It took a controlling stake in Vancouver's Bentall Centre, and bought the HSBC building in Toronto.


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


.


Related Links
Global Trade News






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
TRADE WARS
China's next bubble? Iron ore surges as speculators weigh in
Shanghai (AFP) March 13, 2016
With a huge global steel glut and slowing demand in China, an enormous recent spike in the price of iron ore has left analysts scratching their heads, with some even claiming a flower show might be to blame. But observers say the extraordinary movements for one of the world's basic bulk commodities have been fuelled by something far more prosaic than daisies and daffodils - simple speculati ... read more


TRADE WARS
Japan marks 2011 earthquake, tsunami, nuclear disaster

Canada to takeover Haiti peacekeeping: media

Among the believers: hope endures for MH370 relatives

Web users lament China's 'forest of steel' after lift death

TRADE WARS
UMass Amherst team offers new, simpler law of complex wrinkle patterns

First code of conduct for the use of virtual reality established

New laser achieves wavelength long sought by laser developers

Superman can start worrying - we've got the formula for (almost) kryptonite

TRADE WARS
Taming oceans for 24/7 power

Desalination plants a 'hidden asset' for power, water

Shark babies remain strong in future acidic oceans

Sea level rise threatens larger number of people than earlier estimated

TRADE WARS
In search of Earth's oldest ice

Greenland's ice is getting darker, increasing risk of melting

How permafrost thawing affects vegetation, carbon cycle

Russian scuba divers set deepest under-ice dive record

TRADE WARS
Impact of climate change on agriculture may be underestimated

South Africa says drought cost farmers $1 billion

Urgent need to transform key food producing regions in Africa by 2025

Recoupling crops and livestock offers energy savings to dairy farmers

TRADE WARS
How rivers of hot ash and gas move when a supervolcano erupts

Shipwrecks, tree rings reveal Caribbean hurricanes in buccaneer era

Five years on, Japan tsunami scars visible and invisible

The maximum earthquake magnitude for North Turkey

TRADE WARS
Nigerian Army Council clears Boko Haram arms officer

S.African private army protects world's largest rhino farm

Rwanda prosecutors demand 22 years in jail in sedition trial

US top brass urge tighter W. Africa response to Islamist threat

TRADE WARS
Meat, food processing key to early human evolution

ONR Global sponsors research to improve memory through electricity

Easter Island not destroyed by war, analysis of 'spear points' shows

Neanderthals and modern H. sapiens crossbred over 100,000 years ago









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.