Starwood Corporate : exploring options to boost value inc acquiring or being acquired
Nov 2, 2015, 5:34 am
#406
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Sorry, what I meant was that politicians get involved when there is a Chinese takeover of a US institution. There is precedent for this and they have effectively blocked such takeovers in the past for reasons of "national security". I don't know if they could come up with that story in this case though.
And I'll bet this consideration is being or has been debated in the Chinese government as they decide whether or not to approve a bidder.
And I'll bet this consideration is being or has been debated in the Chinese government as they decide whether or not to approve a bidder.
Nov 2, 2015, 5:58 am
#407
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Sorry, what I meant was that politicians get involved when there is a Chinese takeover of a US institution. There is precedent for this and they have effectively blocked such takeovers in the past for reasons of "national security". I don't know if they could come up with that story in this case though.
And I'll bet this consideration is being or has been debated in the Chinese government as they decide whether or not to approve a bidder.
And I'll bet this consideration is being or has been debated in the Chinese government as they decide whether or not to approve a bidder.
When it comes to the DOJ and DOD, the "national security" argument works for things like technology, telecom, infrastructure, and various other industries (and even airlines); but it will flop when it comes to hotels. I can't see any reasonable person in a position of senior responsibility at DOJ or DOD being willing to try to stop this on "national security" grounds. It just wouldn't fly and would make the person seem like an unreasonable shill when it comes to playing within the bureaucracy. Being a big time public jingoistic public blow-hard on "national security grounds" is more characteristic of people on the Hill than at the Pentagon or DOJ.
I don't see this deal being shot down by the Administration nor by the PRC. It'll come down to the money.
Nov 2, 2015, 6:40 am
#408
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The PRC has already cleared at least two Chinese parties to have capital control passes so as to move in on this deal, if they remain interested.
When it comes to the DOJ and DOD, the "national security" argument works for things like technology, telecom, infrastructure, and various other industries (and even airlines); but it will flop when it comes to hotels. I can't see any reasonable person in a position of senior responsibility at DOJ or DOD being willing to try to stop this on "national security" grounds. It just wouldn't fly and would make the person seem like an unreasonable shill when it comes to playing within the bureaucracy. Being a big time public jingoistic public blow-hard on "national security grounds" is more characteristic of people on the Hill than at the Pentagon or DOJ.
I don't see this deal being shot down by the Administration nor by the PRC. It'll come down to the money.
When it comes to the DOJ and DOD, the "national security" argument works for things like technology, telecom, infrastructure, and various other industries (and even airlines); but it will flop when it comes to hotels. I can't see any reasonable person in a position of senior responsibility at DOJ or DOD being willing to try to stop this on "national security" grounds. It just wouldn't fly and would make the person seem like an unreasonable shill when it comes to playing within the bureaucracy. Being a big time public jingoistic public blow-hard on "national security grounds" is more characteristic of people on the Hill than at the Pentagon or DOJ.
I don't see this deal being shot down by the Administration nor by the PRC. It'll come down to the money.
The only angle the administration might have is if the US Govt has contracts with Starwood, perhaps those could get reviewed. But that wouldn't be enough to block a deal. It would just mean more government revenue for Hyatt and Marriott, etc.
Nov 2, 2015, 7:03 am
#409
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I guess I'm happy that I hedged with Hilton this year.
Is this merger going to drive significant beds out of the system (i.e., close either Four Points or Hyatt Regency Perth; Park Hyatt or Westin Melbourne, etc.?) Not much revenue synergy - so is it then cost?
Is this merger going to drive significant beds out of the system (i.e., close either Four Points or Hyatt Regency Perth; Park Hyatt or Westin Melbourne, etc.?) Not much revenue synergy - so is it then cost?
Nov 2, 2015, 8:30 am
#410
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Faber back on CNBC with a brief update:
• Any potential Hyatt (H), Starwood Hotels (HOT) deal is at least a week away
• If a deal happens, "don't expect a large premium," says Faber
• If a deal happens, "don't expect a large premium," says Faber
Nov 2, 2015, 11:41 am
#411
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That is, not a large premium over the 15% that HOT shot up last week already.
Nov 2, 2015, 3:48 pm
#412
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M&A activity in the hotel business is focused on expanding market share in a fragmented market, so there is a great focus on keeping beds in the system, not "driving them out." Hence the propensity for major hotel companies these days to create 12, 15, 27 brands so that all four corners of the same intersection can be different brands of the same company.
Nov 2, 2015, 5:48 pm
#413
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The other problem with blocking Chinese involvement is, in a nutshell, when the Chinese earn U.S. dollars by making iPhones, we need a darned good reason to stop them from spending the money they earn.
Nov 6, 2015, 5:12 am
#414
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Related:
InterContinental Hotels Said to Mull Deal After Drawing Interest
(Bloomberg) -- Holiday Inn owner InterContinental Hotels Group Plc is exploring strategic options including a potential sale or merger after attracting interest amid a boom in lodging deals, according to people with knowledge of the matter.
The world’s largest provider of hotel accommodation, which has a market value of about 6.2 billion pounds ($9.4 billion), is discussing with financial advisers whether to sell itself or combine with a competitor as the sector consolidates, the people said, asking not to be named because the talks are private. No final decision has been made and the company may choose to stay independent and could focus on making acquisitions of its own, the people said.
- Company discussing options including sale, merger, purchases
- World's biggest provider of hotel lodging worth $9.4 billion
(Bloomberg) -- Holiday Inn owner InterContinental Hotels Group Plc is exploring strategic options including a potential sale or merger after attracting interest amid a boom in lodging deals, according to people with knowledge of the matter.
The world’s largest provider of hotel accommodation, which has a market value of about 6.2 billion pounds ($9.4 billion), is discussing with financial advisers whether to sell itself or combine with a competitor as the sector consolidates, the people said, asking not to be named because the talks are private. No final decision has been made and the company may choose to stay independent and could focus on making acquisitions of its own, the people said.
Nov 16, 2015, 4:02 am
#415
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Wow, we all got this one wrong...
*MARRIOTT TO BUY STARWOOD HOTELS IN DEAL VALUED AT ABOUT $12.2B
*MARRIOTT TO BUY STARWOOD HOTELS IN DEAL VALUED AT ABOUT $12.2B
Nov 16, 2015, 4:06 am
#416
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Wow. Well I think I can say "told ya so" when I posted above that a deal isn't done until it's done. And neither is this deal done until it passes a few more steps.
It looks good to me at first glance. I'm comped to Marriott Gold, but hopefully my Lifetime SPG Plat status will "comp" me further.
Last edited by stimpy; Nov 16, 2015 at 4:12 am
Nov 16, 2015, 4:11 am
#418
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Nov 16, 2015, 4:14 am
#419
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A Marriott acquisition of Starwood is probably not going to be good for SPG elites who value the current SPG Platinum benefits.
Nov 16, 2015, 4:17 am
#420
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As, it seems, the speculation has ended with the announcement of the Marriott deal, I'll close this thread to focus discussion here :
http://www.flyertalk.com/forum/starw...out-12-2b.html
http://www.flyertalk.com/forum/starw...out-12-2b.html