Rumor: Anbang Planning on Bidding $9.2 Billion for IHG
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The hotel mergers and acquisitions scene seems to be ever active! This morning, the UK-based The Sunday Times reported that Chinese insurance conglomerate Anbang Insurance Group is planning a £7 billion bid (US$9.2 billion) for InterContinental Hotels Group (IHG).
Recognize the name Anbang? Back in October 2014, the insurance group made news by purchasing NYC’s famous Waldorf Astoria for $1.95 billion. Early this year, Anbang not only bought Strategic Hotels & Resorts for $6.5 billion, but also prompted a bidding war for Starwood Hotels — before eventually pulling its winning bid. Seemingly anxious to continue growing its real estate portfolio, Anbang reportedly entered talks to acquire IHG in June, which has led to this rumored bid.
IHG itself has been active in the hotel merger scene. In 2014, IHG acquired Kimpton Hotels. Last year, IHG was rumored to be interested in acquiring Fairmont — before Fairmont was eventually picked up by AccorHotels.
If an offer is made for IHG, it may prompt yet another hotel bidding war. According to Travel Daily Media, IHG rejected a takeover bid from Wyndham in 2014. So, Wyndham might resurface with another competing bid — if Anbang moves forward with offering a bid.
At this point, the possibility of a bid is merely a rumor. But, if there are any further developments, grab your popcorn. Like the bidding war for Starwood, this could be another entertaining bidding war.
Featured image courtesy of the InterContinental Hong Kong.
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