Starwood Is Talk Of The Town
My latest trip has been to a hotel event in Manila where talk amongst hospitality industry types is centering on news that leading global hotel group Starwood are in transaction mode.
The most frequent references over the past week or so center on three China-based firms who are eying to buy Starwood. These are Jin Jiang, China Investment Corporation and HNA. All of these parties clearly have the financial clout to do the deal.
Market speculation took a spin over news in Hotels Magazine online two days ago that Hyatt was in the fray and looking at a possible deal.
For now it’s a wait and see, but a China play makes the most sense given the voracious appetite for hospitality assets and brands.
Meanwhile chatter about a possible move by IHG to acquire Fairmont Raffles has continued, yet has now been pushed off center stage by what could be an impending Starwood deal.
At stake is an impressive brand stable including St. Regis, W, Sheraton, Westin and Le Meridien. The hotel business is precisely that, and at the end of the day Wall Street needs to take profits at some point so it’s highly likely the group could trade.