Starwood Hotels backs new Marriott offer

Starwood Hotels has backed a sweetened offer from Marriott International.

Marriott raised its offer to $13.6bn (£9.2bn) after the Chinese insurance firm, Anbang stepped in last week with a $13.2bn bid.

Starwood accepted Marriott's latest offer, describing it as a "superior proposal".

Marriott owns Ritz-Carlton, Residence Inn and Marriott hotels and has 4,400 properties in 87 countries. Starwood owns 1,300 properties worldwide.

"The driving force behind this transaction is growth," said Marriott's chief executive Arne Sorenson.

Marriott's revised bid increased the cash payout for each Starwood investor.

Mr Sorenson said the increased cash consideration "improved the transaction's financial structure."

The companies expect the deal to close by the middle of the year.

Anbang's offer for $83.83 for each Starwood share, threw a spanner in a deal between Marriott and Starwood that was announced last November.

The Chinese insurance company has been making a push into the US market. It bought the Waldorf Astoria Hotel in Manhattan for nearly $2bn in 2015.

On Saturday, Starwood - owner of the Sheraton and Westin hotels - became the first US hotel to enter Cuba.