Marriott raised its offer to £9.2bn after the Chinese insurance firm Anbang issued a £9bn cash offer last week, which caused Starwood to say it would terminate the original merger agreement, which was revealed in November last year, unless revisions were made.
Starwood has now accepted Marriott's latest offer of £9.2bn, describing it as a 'superior proposal'.
Bruce Duncan, chairman of the board of directors of Starwood Hotels & Resorts Worldwide, said: "We are pleased that Marriott has recognised the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders.
"We continue to be excited about the combination of Starwood and Marriott, which will create the world’s largest hotel company with an unparalleled platform for global growth in the upscale segment."
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