Starwood Hotels stated on Friday that Anbang Insurance Group offered more than $13 billion to acquire the said hotel, an amount much larger than what Marriott offered.  Once the agreement pushed through, it would be the biggest-ever deal in the U.S. by a Chinese company.

Starwood Hotels which also run Westin and Sheraton hotels said that Anbang's offer surpass that of Marriott's 15% of agreed cash and stock offer and has plans of dumping the suggested deal of the counterpart hotel chain.  Starwood will pay Marriott a breakup fee of $400 million if it abandons their deal.   

The Chinese insurer has been buying U.S. hotel to obtain cash-generating assets as they achieve to survive with the policy liabilities of the country's aging population. U.S. assets are cited as a good equivocate against fragility in the yuan, reports Reuters.

An agreement was made between Starwood and Marriott that the two hotels will merge in November in a $12 billion deal.  However, that won't be possible anymore since Anbang offered a higher amount.  Marriott has given five days to counterbid Anbang's offer if it still wants to acquire Starwood, according to BBC.

"Marriott can increase their offer because they have the balance sheet flexibility," said Dan Wasiolek, a hotel industry analyst, suggesting the larger rival hotel company could sweeten its offer by $700 million in cash.

Beijing investors have been closing in on US actuaries and assets from overseas to diversify their holdings amidst concerns of the enfeeblement in China's economy.

The approach of Anbang to Starwood was first publicized earlier this week with Starwood stating on Friday that it is certain with Anbang's offer was greater than what Marriott has offered last  year.

The Chinese insurer already acquired New York's Waldorf Astoria with a present $78-per-share cash offer with partners J.C. Flowers & Co. and Primavera Capital, as reported by CNBC.

Anbang is about to set the largest acquisition history in where a U.S. firm was bought by a Chinese firm, once the deal pushed through.  Chinese companies have been spending a lot on acquiring U.S. and other foreign firms this year with almost $103 billion.