In light of Chinese insurer Anbang’s unsolicited $12.8 billion bid for Starwood Hotels & Resorts, some analysts are predicting that Marriott, who originally won the bid to merge with Starwood, will moderately increase its offer to ensure the deal is made. If the company ups the offer by $200 million, it would equal Anbang’s offer, says Travel Weekly. J.P. Morgan analyst Joseph Greff wrote to clients that he would not be surprised if Anbang ultimately wins Starwood’s owned assets, while Marriott gains Starwood’s management and franchise businesses. However, other analysts say there could be hurdles for Anbang to overcome before such a deal occurs. Anbang’s possible acquisition of Strategic Hotels & Resorts could complicate the Starwood deal, as the company would own several hotel brands under Starwood, and flags owned by companies like Marriott under Strategic. Anbang could also face regulatory obstacles, as it must get approval from the Chinese government to get its capital overseas. To read more, click here.
The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the nearly 2 million-employee lodging industry, today submitted a statement for the record to the U.S. House Small Business Subcommittee on Investigations, Oversight and Regulations to express concerns on National Labor Relations Board’s (NLRB) Browning-Ferris Industries decision that expands the definition of a “joint employer.”
To read AH&LA’s full testimony, click here.
According to talent acquisitions solutions provider iCIMS’s just-released quarterly report—U.S. Hiring Trends—the job market in the United States is becoming tighter, with more employers competing for a smaller pool of applicants. The report also showed that the leisure and hospitality industry had one of the fasted turnaround times between job posted and job filled, which took an average of 41 days in 2015. To read more, click here.
When it comes to U.S. television advertisment spending, Marriott International outdid all other hotel chains in 2015, according to iSpot.tv advertising metrics. The company spent roughly $47.2 million, while runner-up Choice Hotels spent $29.9 million. and Wyndham Worldwide rounded out the top three spending $17.4 million. To learn which other hotel companies shelled out the most for U.S. television spots, click here.
When it was first announced back in November, the Marriott/Starwood merger seemed like a foregone conclusion. However, a surprise bid from Chinese insurer Anbang may make the merger a little messier, especially coming up on the March 17 expiration of a “no-shop” clause that prevents Starwood from negotiating with competing bidders, and, more importantly, March 28, when shareholders are to vote on the merger. Read more here.
Share Better, a hotel industry-supported group, has doubled what it will spend to target Airbnb this year. The group plans to spend roughly $1 million over the next six months, beginning with its first national campaign to air on television today. Read more here.