Starwood Hotels & Resorts’ shares lived up to its stock exchange ticker symbol (HOT) for a second day in succession with reports that rival Hyatt has entered the race to buy the company.
Neither company has made an official comment regarding media reports but unnamed sources told CNBC the two companies are in advanced talks and a cash and stock deal could be reached within a week or two.
It follows speculation three Chinese firms were also considering bids for the hotel group.
Starwood, which operates several brands including Sheraton, St Regis and Westin, has a current market valuation of about $13 billion, while Hyatt is valued at more than $7 billion.
In the clearest signal yet that some sort of deal is close, acting CEO Adam Aron said: "Our progress is active and nearing conclusion. I would be surprised if we don’t have answers to these questions by the end of this calendar year."
"Our clear goal is to optimize the value for our shareholders."
Separately, Starwood announced an agreement to sell its Vistana Signature Experiences vacation ownership business to Interval Leisure Group Inc.
