China's richest man sends Marriott, Starwood stocks up on acquisition news13 Sep, 2013 By: David Eisen
Sometimes all it takes is the promise of overseas investment to pump up companies here in the U.S. That's just what happened this week on the news that China's richest man, Wang Jianlin, planned to buy hotel management companies. The announcement sent Marriott International and Starwood Hotels & Resorts Worldwide's stock prices up.
According to Bloomberg, Marriott gained 3.2 percent on Thursday, it's biggest jump in three weeks, while Starwood's stock price climbed 1.4 percent in trading on the New York Stock Exchange. Wand said he tapped two investment banks to help in the process. There was no word yet on specific companies he is targeting.
"It's a slow process," Wang said. "Those companies we liked, they might not be willing to sell. Those willing to be bought, we might sometimes feel the brand isn't as good. For those open to a sale and at the right price, the negotiations can also sometimes be very tough.
Wang has already said he is looking to build luxury hotels in the U.S., particularly in New York, where in July he said he was building a $1 billion hotel, with more deals to surace in the fourth quarter. In London, Wang said he was building a 160-room luxury hotel as part of a $1.08-billion twin-tower residential project.
Wang, who also owns the AMC Entertainment cinema chain, which he bought for $2.6 billion last year, has around $5 billion to play with in the U.S., according to L.A. Biz. In total, Wang now has 38 hotels in his portfolio, but is looking to expand at a clip of around 15 per year, according to Bloomberg.
"Wanda is looking at hotels as this is an important business and hotels are the biggest luxury item globally, even bigger and more expensive than yachts and planes," Wang said.
According to The Wall Street Journal, Wang's assets and fortunes total $14 billion. Dalian Wanda's revenue will exceed $100 billion by 2020, Bloomberg reports.Topic : Wang Jianlin
External Source : Bloomberg, Hotel Management, L.A. Biz
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