Shares of Starwood Hotels and Resorts jumped about 5% Wednesday after a report that Hyatt Hotels was in advanced talks to buy the company.
The negotiations have been going on for weeks and could be announced in as little a week, according to CNBC. Hyatt management would take control of the combined companies, the report said, citing unnamed sources.
Speculation over Starwood’s future has run high as the company has trailed competitors such as Marriott and InterContinental Hotels Group in growing its brands, which include Sheraton, W Hotels, and Aloft.
Hyatt’s management would retain control of the combined company and a deal could be announced in the coming weeks, the source told Reuters.
Starwood is valued at about $12.75 billion while Hyatt has a valuation of about $7.23 billion. Both the companies declined to comment.