Starwood Hotels and Resorts has opened the door to a possible takeover or merger.
The company said it is looking at strategic alternatives to deliver shareholder value and has instructed investment bank Lazard to explore options.
"No option is off the table," said Starwood chairman Bruce Duncan.
Shares in Starwood rose sharply on the news, with investors readying for a potential takeover, but the strategic review could simply result in a sale of Starwood-owned properties or the company may even make an acquisition itself.
"We will take the time we need to thoroughly evaluate our opportunities and achieve the best result for our shareholders, business partners, and associates," Duncan said.
Starwood has been on the ‘asset light’ trail, selling off about $1.5 billion worth of hotel real estate in the last two years.
The company has lagged behind rivals Hilton Worldwide and Marriott in recent years in overall revenue and shareholder returns.
Both those companies have a portfolio at least twice the size as Starwood’s.
Interim CEO Adam Aron said the company will give its flagship Sheraton brand a multi-million dollar refresh and the search for a permanent CEO continues after the departure of Frits van Paasschen in February.
