Starwood has received a new bid from the Chinese consortium that wants to buy it and has notified Marriott of its intention to terminate the merger agreement it had with the rival hotel firm.

The Chinese consortium, led by Anbang Insurance Group, has upped its bid by US$2.00 per share from its original proposal on 10 March, making its offer a “superior proposal” to Marriott’s.

Marriott has until 28 March to submit a counter-proposal, and Starwood said it will continue in good faith with Marriott during this period.

Starwood is not permitted to terminate the Marriott agreement until the negotiation period has ended, taking into account any revisions that Marriott proposes during this period.

Starwood has postponed its 28 March stockholder meeting as a result of the developments.