Starwood Hotels & Resorts (HOT), the operator of Sheraton and Westin hotels, said on Friday it had accepted a raised buyout offer from a group led by China’s Anbang Insurance and would scrap its deal with Marriott International (MAR).
A succcessful deal would bolster Anbang’s reputation as one of China’s top corporate acquirers and would follow its purchase of New York’s iconic Waldorf Astoria hotel last year.
It would also be the biggest Chinese investment in U.S. Real estate assets.
Anbang’s new offer raises the value of Starwood to $13.16 billion from $12.82 billion, based on shares outstanding as of Feb. 19. Marriott had offered $12.2 billion for Starwood.
Marriott, which has until March 28 to counter Anbang’s offer, said it was considering its options.
The Anbang-led group, which includes private equity firms J.C. Flowers & Co and Primavera Capital, has raised its cash offer for Starwood to $78.00 per share from $76.00, Starwood said on Friday.
Starwood shareholders will also receive stock in Interval Leisure Group Inc, which is buying Starwood’s vacation ownership business for about $5.67 per Starwood share.