There was a bunch of chatter last night about a possible takeover bid for Intercontinental Hotel Group (IHG) and that Starwood Hotels & Resorts was a possible (likely?) suitor.
Is it true? The short answer is I just don’t see it happening.
The longer answer is that I think this is likely a case of mistaken identity combined with excited possibilities of a mega hotel company the likes we don’t see very often. Barry Sternlicht was the long-time CEO of Starwood Hotels & Resorts, but that was while he was (still is) the founder and CEO of Starwood Capital Group, which still actively invests today.
Starwood Capital Group has lots of cash.
Starwood Hotels & Resorts generated a billion dollars in cash-flow last year, but Barry Sternlicht’s Starwood Capital has a bunch more.
It’s not that this couldn’t happen. But, a merger of these two large hotel chains doesn’t look likely from where I stand.