Starwood Hotels & Resorts Worldwide Inc. said it has agreed to a sweetened $13.6 billion deal from Marriott International Inc. that trumps last week’s boosted bid from a group led by China’s Anbang Insurance Group Co.

In the new deal, Starwood shareholders will receive $21 in cash and 0.8 of a share of Marriott for each share of Starwood. The deal values Starwood’s share at $79.53, according to Friday’s closing prices.

Starwood...