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October 29, 2015

Hyatt in talks to purchase Starwood Hotels

Hyatt Hotels is reportedly negotiating to purchase the Starwood Hotels and Resorts Worldwide in a cash and stock deal, in a bid to establish one of the world’s largest hotel businesses.

By Samseer M

The Romanos

Hyatt Hotels is reportedly in talks to purchase Starwood Hotels and Resorts Worldwide in a bid to establish one of the world’s largest hotel businesses.

A source claimed the acquisition could be announced within the next few weeks.

If the deal is finalised, Hyatt’s management would retain control of the combined company, Reuters reported.

Starwood is currently valued at approximately $12.75bn, while Hyatt has a value of $7.23bn.

"If the deal is finalised, Hyatt’s management would retain control of the combined company.”

According to STR, Hyatt owns roughly 160,000 hotel rooms worldwide, while The Wall Street Journal reports Starwood to have more than 350,000 rooms.

Meanwhile, a number of Chinese firms, including Shanghai Jin Jiang International Hotels, reportedly expressed interest in Starwood Hotels.

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Reuters also noted that the firm had reached out to potential bidders, including InterContinental Hotels Group, Wyndham Worldwide and sovereign wealth funds, after it decided to explore a sale.

In addition, Interval Leisure Group has agreed to purchase Starwood’s vacation ownership business for $1.5bn.

With this deal, ILG receives exclusive rights to Starwood’s Sheraton and Westin brands in the vacation ownership market.


Image: Starwood’s The Romanos luxury collection resort in Costa Navarino, Messinia, Greece. Photo: courtesy of costanavarino via Wikipedia.

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