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 | Jul 27, 2023
Number of U.S. adaptive reuse projects jumps to 122,000 from 77,000
The number of adaptive reuse projects in the pipeline grew to a record 122,000 in 2023 from 77,000 registered last year, according to RentCafe’s annual Adaptive Reuse Report. Of the 122,000 apartments currently undergoing conversion, 45,000 are the result of office repurposing, representing 37% of the total, followed by hotels (23% of future projects).
Hotel Facilities | Jul 26, 2023
Hospitality building construction costs for 2023
Data from Gordian breaks down the average cost per square foot for 15-story hotels, restaurants, fast food restaurants, and movie theaters across 10 U.S. cities: Boston, Chicago, Las Vegas, Los Angeles, Miami, New Orleans, New York, Phoenix, Seattle, and Washington, D.C.
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Hotel Facilities | Jul 21, 2023
In Phoenix, a former motel transforms into a boutique hotel with a midcentury vibe
The Egyptian Motor Hotel’s 48 guest rooms come with midcentury furnishings ranging from egg chairs to Bluetooth speakers that look like Marshall amplifiers.
Sponsored | Fire and Life Safety | Jul 12, 2023
Fire safety considerations for cantilevered buildings [AIA course]
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
Engineers | Jun 14, 2023
The high cost of low maintenance
Walter P Moore’s Javier Balma, PhD, PE, SE, and Webb Wright, PE, identify the primary causes of engineering failures, define proactive versus reactive maintenance, recognize the reasons for deferred maintenance, and identify the financial and safety risks related to deferred maintenance.
Mixed-Use | Jun 12, 2023
Goettsch Partners completes its largest China project to date: a mixed-used, five-tower complex
Chicago-based global architecture firm Goettsch Partners (GP) recently announced the completion of its largest project in China to date: the China Resources Qianhai Center, a mixed-use complex in the Qianhai district of Shenzhen. Developed by CR Land, the project includes five towers totaling almost 472,000 square meters (4.6 million sf).
Architects | Jun 6, 2023
Taking storytelling to a new level in building design, with Gensler's Bob Weis and Andy Cohen
Bob Weis, formerly the head of Disney Imagineering, was recently hired by Gensler as its Global Immersive Experience Design Leader. He joins the firm's co-CEO Andy Cohen to discuss how Gensler will focus on storytelling to connect people to its projects.
Mass Timber | May 23, 2023
Luxury farm resort uses CLT framing and geothermal system to boost sustainability
Construction was recently completed on a 325-acre luxury farm resort in Franklin, Tenn., that is dedicated to agricultural innovation and sustainable, productive land use. With sustainability a key goal, The Inn and Spa at Southall was built with cross-laminated and heavy timber, and a geothermal variant refrigerant flow (VRF) heating and cooling system.
