clock menu more-arrow no yes mobile

Filed under:

In Hotel Megadeal, Hyatt May Acquire Starwood, Valued at $13.5 Billion

Chicago-based Hyatt has entered into advanced talks to acquire Starwood Hotels and Resorts, according to a CNBC report and the travel website Skift, a potentially massive deal that would create a combined company boasting more than half a million rooms. Currently valued at $13.5 billion, Starwood controls or manages roughly 1,270 properties in about 100 countries, including the W Hotels brand.

Starwood, based in Stamford, Connecticut, operates worldwide under an assortment of brands including Westin, W Hotels and St. Regis. The company has lagged behind Marriott and Hilton (each of which has more than 700,000 rooms) and has been "exploring strategic options" since April. Analysts believe a Hyatt acquisition of Starwood would help both companies become more well-rounded, creating a joint company boasting the limited-service options of Hyatt and a large international footprint. Hyatt owns 618 properties in 51 countries, with a value of $7.1 billion.

Earlier this week, The Wall Street Journal reported that three Chinese companies were in the running to make a takeover bid (the government will choose a single firm to compete, to prevent competition between Chinese firms from driving up the final price). If any of the three companies in question made a successful bid for Starwood, it would be the largest Chinese acquisition of a U.S. company. This comes on the heels of expanded Chinese investment in U.S. real estate, including big-name New York hotels such as the Waldorf-Astoria (for a record $1.95 billion) and the Baccarat.

· Victorian-Era Sea Forts in England Reborn as Rad Luxury Hotels [Curbed]
· David Rockwell and Ian Schrager Talk Preservation, Collaboration, and the New York Edition Hotel [Curbed]
· 21 Alluring Shots of Canada's Raddest New Boutique Inn [Curbed]
· A Kickstarter-Funded Hotel Renovation Will Bring Portland Style to a Small-Town Oregon Inn [Curbed]
· Architect Deborah Berke on Designing Museum Hotels and Buildings 'That Dance Between Foreground and Background' [Curbed]