The Chinese consortium led by insurance group Anbang has increased its offer for Starwood Hotels and Resorts to $14 billion, trumping the $13.6 billion bid by Marriott.
Starwood said it had received a non-binding proposal from the consortium which is “likely to lead to a superior proposal”.
The offer follows Marriott’s revised bid of $13.6 billion, higher than Anbang’s original $13 billion bid. Marriott had expected a merger, which would create the world’s largest hotel group, to be completed by mid-2016.
In a statement Starwood said there will be a shareholder meeting on April 8 to discuss the latest offer but added it “has not changed its recommendation in support of Starwood’s merger with Marriott”.
Senior research analyst David Loeb told CNBC he doesn’t expect a fresh offer from Marriott.
“I just think Marriott is too disciplined to pay more than what they've already offered," Loeb told CNBC's The Rundown.
"If I was a Starwood shareholder, I would be asking for the maximum value and I would be asking for the maximum value now," Loeb added.
"I think Anbang's offer, being all cash, is probably the one that shareholders would rather have. The advantage is definitely with Anbang at this point."