A consortium led by Chinese insurance firm Anbang has bid $13 billion for Starwood Hotels and Resorts, challenging Marriott’s deal for the hotel firm.
Marriott said it remained committed to its $12 billion with Starwood, which would create the world's largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection.
The Chinese bid is mainly a cash deal against Marriott's offer which is a combination of stocks and cash.
Starwood confirmed it received a non-binding offer from the consortium and has received a waiver from Marriott allowing it to engage in discussions with Anbang. The waiver expires on March 17.
In a statement Starwood said: “Starwood’s board of directors has not changed its recommendation in support of Starwood’s merger with Marriott.
“The board will carefully consider the outcome of its discussions with the consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.
“The Consortium has not completed diligence and there are a number of matters to be resolved in the Consortium’s proposal.
“There can be no assurance that discussions will result in a binding proposal from the Consortium or that a transaction with the Consortium will be approved or consummated. Starwood does not intend to comment further on its discussions with the Consortium prior to the expiration of the waiver period,” it said.
Anbang last week agreed a $6.5 billion deal to purchase Strategic Hotels and Resorts from Blackstone Group. It also bought New York’s Waldorf Astoria for almost $2bn in 2014.