Anbang Submits New Offer To Starwood

In the latest news from the Starwood saga, Anbang has submitted a new offer to Starwood to purchase the Hotel chain at $82.75 per share, almost $14 Billion in an all cash deal.  In contrast, the latest Marriott offer was worth about $13.6 Billion in a cash + stock deal, and because of changes in stock prices, is worth slightly less than that now.  It is clear that Anbang is not going away from these negotiations and it is unclear whether or not Marriott will submit another proposal at this point, but I doubt this story is over yet.

Marriott’s Plans For Starwood

The main reason that I am rooting for Anbang to win this bidding ward, as well as many other SPG members, is that Marriott plans to eventually merge the SPG loyalty program with Marriott.  Starpoints are worth a lot, and can also be transferred to a large number of airlines.  Marriott points are not worth that much, and the credit card bonus categories for everyday spending make earning free nights difficult.

The room view from the Sheraton Maldives
The room view from the Sheraton Maldives

Marriott’s main goal is to create the largest hotel chain in the world.  This ambition, unfortunately, would lead to less loyalty program options and a less valuable rewards program.  Keep rooting for Anbang to win this battle if you want to keep the SPG program alive!

Earning Starpoints

With the increased signup bonuses on the personal and business American Express Starwood Preferred Guest cards, there has never been a better time to apply.  The 35,000 point signup bonus is a historic high!  You only have until March 30, 2016 to take advantage of this offer.

amex_spg_35kAmerican Express Starwood Preferred Guest (personal):  35,000 Starpoints after spending $3,000 in the first 3 months.

American Express Starwood Preferred Guest Business:  35,000 Starpoints after spending $5,000 in the first 3 months.

st_regis_maldives
The new St. Regis, Maldives which is set top open September 1, 2016.

The Bottom Line

Anbang is in this to win, and their all cash offer is much stronger than the Marriott cash + stock offer.  Keep following the news and hope for Anbang to win so that the SPG program can be kept intact!

H/T:  CNBC