Intercontinental Hotels leaps as Chinese bid for Sheraton giant

Shareholders are due to vote on Marriott’s offer on 28 March

The Waldorf Astoria hotel in New York, owned by Anbang (AP)

Intercontinental (IHG), the UK hotel giant, emerged as a possible bid target yesterday after a Chinese buyer gatecrashed a US hotel megadeal, prompting speculation the UK group will be approached by the jilted suitor.

China’s Anbang Insurance, which owns the Waldorf Astoria in New York, railroaded a proposed takeover of US chain Starwood by hotel giant Marriott with an audacious counter offer just days before shareholders voted to approve the deal.

Anbang, leading a consortium of investors, has offered $76 (£53) a share cash bid, worth about $13bn.

Starwood had agreed a $10.8bn cash and share offer with Marriott last November. “The feeling in the market is that whoever loses out on a bid for Starwood will maybe turn their attention to IHG as an alternative,” Numis analyst Wyn Ellis said.

Anbang tried to buy London’s Heron Tower for £750m last year

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Anna Barnfather, an analyst at Panmure Gordon, added: “If Marriott is thwarted, IHG will be a target. As growth slows, hotel companies are looking for M&A to diversify.”

IHG, which owns Holiday Inn and is listed on the FTSE 100, rose 4 per cent after the US bid battle emerged. The firm declined to comment on takeover rumours.

Starwood, which owns the Sheraton brand, said it still supports the Marriott takeover but is considering the Anbang offer. Marriott has given Starwood’s board a waiver to hold talks with the consortium, which expires on Thursday. Starwood has to pay Marriott $400m in termination fees if the deal collapses.

Shareholders are due to vote on Marriott’s offer on 28 March.

Anbang, which tried to buy London’s Heron Tower for £750m last year, is fast becoming a dominant player in the global hotel and property market, following a string of big money deals for luxury US sites.

It recently struck a $6.5bn deal to buy a portfolio of upmarket US hotels from Blackstone called Strategic Hotels & Resorts. The luxury collection of 16 hotels includes the Four Seasons in Arizona and Essex House in New York.