Starwood is calling off a $12.2 billion buyout agreement with Marriott in favor of an offer from a group of investors led by the Chinese insurance company Anbang.
The decision came after Anbang upped its offer for Starwood by nearly $370 million Friday, bringing the total deal to more than $14 billion.
Starwood (HOT), which owns the Sheraton and Westin hotel brands, has to pay Marriott (MAR) $400 million to end the deal.
Why Marriott Is Losing Starwood to the Chinese
Marriott has until March 28 to make another offer. Marriott International Inc. said Friday that it still believes a combination with Starwood is best, and is considering its next step. Marriott first offered to buy Starwood in November.
Shares of Starwood Hotels & Resorts Worldwide Inc. rose more than 5% before the stock market opened.
This article was originally published on Time.com