So now Marriott is after Starwood again with an increased offer of 13.6B...
I hope Marriott wins (at a fair price, that is).
As a frequent guest, I would like the added places to stay. As a shareholder, I would not want Marriott to pay too high a price.
Thanks for sharing this link, dansplan. We'll see what happens!
I doubt Marriott will go up again but hopefully they raised the breakup fee
Breakup fee went up by $50M to $450M. Chances are good this time the deal goes through. I don't think Marriott will raise again.
and they will need to pay Marriott deal expenses worth another 18M
Thanks for sharing that dansplan, I wasn't aware till I logged in.
Marriott sees real synergies here and an opportunity to enormously increase its footprint. I'm not a great believer in these mega mergers producing anything other than fees to lawyers and bankers and bonuses to the board but this I am sold on,
More coverage means a bigger opportunity to negotiate more contracts with event and conferencing businesses who will see considerable advantages in dealing with one hotel company for many events but need very wide coverage. Another major benefit of Marriotts increased size will be more guests taking the view they can actually make the number of stays in the rewards program to make collecting points worthwhile and hence move to booking via Marriott, saving the enormous online travel agents fees.
Marriott initially got an absolute bargain, now it's a fairer price but from Marriotts points of view still represents good growth at a good price. However Anbang are motivated by a different desire, that to shelter their huge cash pile in stable dollar denominated assets provinding superficially more attractive asset base for their insurance business to lean on. However they are making a big mistake if they believe it's worthwhile overpaying as Starwood has found it difficult to create value with their top-heavy hotel balance and Anbang are unlikely to have the skill set to change that. Value can quickly evaporate and even if it's in hard US Dollars it's still lost money!
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