Report: Hyatt in Talks to Buy Starwood Hotels

Industries Reuters

Hyatt Hotels Corp is in talks to buy U.S. hotel operator Starwood Hotels and Resorts Worldwide Inc, CNBC reported, citing sources.

Continue Reading Below

Under a cash and stock offer, Hyatt management would retain control of the combined company, CNBC said on Wednesday. 

Hyatt declined to comment, while Starwood did not immediately respond to a request for comment.

China's sovereign wealth fund and two big Chinese companies had expressed interest in Starwood Hotels, joining other suitors from around the world, a source familiar with the matter told Reuters on Tuesday.

Starwood is valued at about $12.75 billion while Hyatt has a valuation of about $7.23 billion.

Starwood had reached out to potential bidders including InterContinental Hotels Group Plc, Wyndham Worldwide Corp and sovereign wealth funds in July, three months after it decided to explore a sale, sources told Reuters.

Continue Reading Below

Interval Leisure Group said on Wednesday it would buy Starwood Hotels' vacation ownership business, which it valued at about $1.5 billion.

Starwood, which owns the St. Regis and Sheraton hotel brands, also on Wednesday reported a better-than-expected third-quarter profit, driven by higher occupancy rates.

Shares of Hyatt were up 4.2 percent at $52.55 while Starwood was up 9.2 percent at $81.67 in early trading.