Le Meridien brand unaffected by debt acquisition

The Le Meridien brand will remain intact and independent of any other brand in spite of a debt acquisition by a rival hotel company, Le Meridien Phoenicia general manager Ben Sington said yesterday.

"The current issue is about ownership of the brand and does not directly affect hotel operations worldwide nor Le Meridien Phoenicia nor the experience our guests have with us," Mr Sington told The Times.

Brothers Holdings Inc. and Starwood Hotels & Resorts Worldwide Inc. yesterday announced the acquisition of all of the outstanding senior debt of Le Meridien Hotels and Resorts Ltd.

The senior debt, of about $1.3 billion, was acquired at a discount, according to the Westin Dragonara Resort, a local Starwood hotel.

As part of this funding, Lehman and Starwood have entered into an exclusive agreement to negotiate the recapitalisation of Le Meridien in the coming months.

The Le Meridien portfolio includes more than 120 upscale hotels and resorts with significant concentration in major European cities and resort destinations.

Mr Sington said Lehman Brothers was consulting with Starwood on the deal but could not make any comment on the discussions.

"We continue to operate successfully and continue to provide our guests with the very best Le Meridien has to offer," he said.

Starwood Hotels & Resorts Worldwide Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties.

With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including St. Regis, Sheraton, Westin and Four Points by Sheraton.

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide.