Starwood hotels accepts $13.6bn merger with Marriott International

Marriott International has had a higher offer accepted for Starwood Hotels and Resorts Worldwide, valuing the Sheraton and Westin hotel owner at more than $13bn.

The new stock-and-cash offer is worth $79.53 (£55) per share, or $13.6bn, and tops an all-cash $78 per share, or $13.16bn, offer from a group led by China’s Anbang Insurance Group.

The Marriott-Starwood deal will create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and Autograph Collection. In November Marriott offered $12.2bn, or $72.08 per share, for Starwood.

Starwood shareholders will receive $21.00 in cash and $0.80 shares of Marriott Class A common stock for each share of Starwood common stock, Marriott said.

Starwood shares were trading at $82.72 before the opening bell; Marriott was slightly down at $72.00.

Under the revised agreement, Starwood will pay a breakup fee of $450m, up from $400m previously.

Starwood’s chairman, Bruce Duncan, said the company was pleased Marriott had “recognised the value” Starwood brought to the merger.