Hyatt Hotel Group on Merger Negotiations with Starwood Hotel

American Hotel Group, Hyatt is in merger negotiations with the Stamford-based hotel and leisure company, Starwood Hotel and Resorts. With the deal regarding cash and stocks, Hyatt group would take over the merged companies. However, the merger talk between the hotels is still ongoing.

The CNBC reported, both hotel companies opened on Wednesday trading sharply higher. On Tuesday, the Starwood Hotel shares increase and it was reported that three Chinese firms are competing to purchase Starwood that owns luxury hotel big names such as Westin, Sheraton and other famous hotel brands.

According to WSJ, one of the three Chinese companies include the lodging mammoth in China, the Shanghai Jin Jiang International Hotels Group is showing a great interest in takeover offer for Starwood, however, these Chinese companies still needs to vie against each other for government approval.

Starwood owning several hotel luxury brand hotels is valued over valued over $13 billion, on the other hand, Hyatt, has a valuation of about $7 billion. The Starwood CEO has express also had express that the company nearing a deal to sell the company or merge with another hotel chain, according to Fox News. CEO Adam Aron said, "This has the company's highest attention. Our clear goal is to optimize the value for our shareholders." There are also rumors that a potential buyer heated up this week.

The CEO also added, "Our progress is active and nearing conclusion," Aron told investors Wednesday afternoon. He would say anything regarding on any specific deal, however he said, "I would be surprised if we don't have answers to these questions by the end of this calendar year."

The combined companies will be able to compete with rival hotel giants like Marriott International, Hilton Worldwide and Intercontinental Hotels Group, all which have more than 4,000 properties and roughly 700,000 rooms each.