Now that the big airlines have gone through their versions of love and marriage, it seems to be time for the hotels. Starwood, owner of such brands as Westin, Sheraton, W Hotels and more seems to be the object of everyone’s affections.
In recent years, Wall Street hasn’t been happy with Starwood, and would welcome a change in leadership. Today’s hot reports on potential partners are centered on Hyatt, which is about half Starwood’s size, but has little debt and considerable cash; “insiders” report that a deal is close, possibly within weeks. Starwood has been evaluating possible partners since earlier this year.
Other possible suitors include Chinese companies such as Shanghai Jin Jiang International Hotels, which is said to have requested permission for a bid. At one point, Intercontinental Hotels was rumored to be bidding.
A Hyatt/Starwood merger would create an entity with over a half-million rooms, moving it up on a scale where Hilton and Marriott are among the super-giants.
For more detail, here are two current reports from the New York Times and the Wall Street Journal.
