Starwood is in merger discussions with Hyatt Hotels Corp, according to people familiar with the matter, Hyatt’s recent conversations with Starwood, which were earlier reported by CNBC, involve the smaller Hyatt bidding for Starwood, these people said. (Source: WSJ)

Shares of Starwood Hotels & Resorts Worldwide Inc. soared for a second straight day following another report of takeover interest in the company that owns Westin, W Hotels and other hotel brands.

Starwood sells more assets (Oct 29)

Interval Leisure Group, and Starwood Hotels and Resorts Worldwide, Inc. today announced that the Boards of Directors of both companies have unanimously approved a definitive agreement under which a wholly owned subsidiary of ILG will acquire and then merge with and into Vistana Signature Experiences.

The combination, which will follow completion of the planned spin-off of Vistana from Starwood announced on February 10, 2015, has a total value to Starwood of approximately $1.5 billion.

Vistana is a leading developer marketer and manager of 22 high-end vacation ownership resorts with more than 220,000 owners and a world-class team of more than 5,000 associates. As a result of this merger, the combined company will have a more diverse portfolio and a strengthened position as a leader in the vacation ownership industry with an expansive portfolio of approximately 200 managed resorts encompassing over 500,000 owners.

The merger will bolster ILG’s vacation ownership portfolio by adding worldwide exclusive rights to use the Sheraton® and Westin® brands in vacation ownership, while allowing Sheraton Vacation Club and Westin Vacation Club owners to continue enjoying access to the Starwood Preferred Guest (SPG) program. In addition, ILG provides memberships to nearly two million consumer families through Interval International, one of its major operating businesses.

The combined company will have the scale, global reach, assets, inventory, and sales and marketing infrastructure to support increased growth. It will also have an enhanced financial profile, with a strong balance sheet and substantial free cash flow from recurring fee-for-service revenues to drive sales and earnings growth. (Source: Interval Leisure Group)

4Hoteliers.com reported on October 28, 2015:

At least three big Chinese companies are competing to win Beijing’s approval to bid for Starwood Hotels & Resorts Worldwide, according to people with knowledge of the discussions, setting the stage for what could be the largest-ever Chinese takeover of a US company.

Given the potential size of the deal, the Chinese government wants only one domestic company to make a bid, the people said, so that Chinese companies don’t drive up the price by bidding against one another.

The government also must approve major corporate investments abroad. The lengthy process could potentially make Chinese companies miss the best time to cut a deal, Chinese executives said. 

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