Starwood Hotels confirms it got a much better buyout offer from a huge Chinese company

Starwood Hotels confirmed that it got a "superior" buyout proposal from a group of companies led by the Chinese insurer Anbang, in a statement Friday.

In November, Marriott announced a $12.2 billion deal that would create the world's largest hotel chain.

But Starwood thinks Anbang's binding counter-offer is "superior."

CNBC first reported Friday that Starwood signed a deal with Anbang to be acquired for $78 per share in cash, or $13.2 billion. Anbang made a binding offer that was boosted from a $76-per-share proposal submitted March 10.

Marriott now has five days to respond.

Starwood noted in its statement that it cannot end the agreement with Marriott unless a better offer is made before midnight on March 29.

Marriott shares were little changed in pre-market trading, while Starwood shares jumped as much as 4%.

Anbang has been mopping up American real estate with an eye for some of the most iconic hotel brands. In 2014, it bought the Waldorf Astoria in New York.

Starwood's brands include Sheraton, W, and the Westin.