Starwood Hotels and Resorts’s future is still uncertain, and while possible acquisition suitors have come and gone, the industry still believes that eventually some M&A developments will happen. In May I discussed what a takeover by Wyndham Worldwide would look like, but concluded that neither company would gain strategically in terms of geographical coverage from a takeover.
Some new developments have now put a possible merger between Starwood and Intercontinental Hotels Group on the cards. Intercontinental recently sold its Hong Kong flagship to a consortium for £604 million, rumoured to be an effort to bring in the cash needed for a merger. This briefing discusses how this scenario differs from the Wyndham case, and highlights again that the global hotel chains might be better off considering their options with local players.