Lehman Brothers and Starwood Capital have joined forces to acquire the portfolio of hotel group Le Meridien for an undisclosed sum.
Following the acquisition, US-based hotel group Starwood Hotels & Resorts will buy rival Le Meridien’s brand, management and franchise business and will also enter into management agreements for 36 of Le Meridien’s owned and leased properties.
It will continue to run them under their existing brands.
Le Meridien chief executive Robert Riley said: “If completed, these arrangements would at long last provide for the consensual recapitalisation of the group.
“The joint venture with Lehman Brothers and Starwood Capital Group should provide a financially strong structure for the current owned and leased portfolio.”
The transactions and recapitalisation are expected to be completed in the third quarter of 2005.
London-based Le Meridien has a global portfolio of more than 130 luxury and upscale hotels in 56 countries worldwide.
The majority of its properties are located in cities and resorts throughout Europe, the Americas, Asia Pacific, Africa and the Middle East.
Last year the group opened 10 new hotels. A further 21 new properties are in the pipeline and are scheduled to open during 2005 and beyond.
References: EGi News 28/04/05
