Le Méridien hotels to be sold

Le Méridien Hotels and Resorts has announced that affiliates of Lehman Brothers and Starwood Capital Group Global LLC have advised the Group that they intend to form a joint venture in order to purchase the owned and leased hotel portfolio of Le Méridien.

The agreements are non-binding and subject to regulatory approvals, due diligence and the agreement of certain Le Méridien stakeholders.

The Group has been advised that Starwood Hotels and Resorts Worldwide, Inc. has entered into a non-binding agreement with the Lehman/Starwood Capital joint venture to acquire the Le Méridien brand, management contract and franchise business from Le Méridien.

Starwood Hotels would also enter into management agreements for the 36 owned and leased Le Méridien properties to be acquired by Lehman and Starwood Capital Group with such hotels continuing to be operated under their current flags.

The transactions and recapitalisation are anticipated to be completed in the third quarter of this year. In the meantime, Le Méridien Hotels and Resorts will continue to be operated independently by current management.

The London-based Le Méridien is a global hotel group with a portfolio of more than 130 luxury and upscale hotels in 56 countries worldwide. The majority of its properties are located in the world's top cities and resorts throughout Europe, the Americas, Asia Pacific, Africa and the Middle East.

Le Méridien Phoenicia in Floriana is one of the 36 owned properties. Last year Le Méridien opened 10 new hotels and 21 new properties are in the pipeline, including Le Méridien St Julians in Balluta Bay which is a managed property.

In the 2005 Luxury Brand Status Index survey, Le Méridien was recognised as one of the top 15 luxury hotel brands.