Starwood Hotels & Resorts today said it signed a definitive agreement to acquire the Le Meridien Hotels & Resorts portfolio of more than 130 properties in 56 countries. Starwood said it expects the deal to close within the next three months.
As the deal awaits finalization--subject to "certain significant terms and conditions including completion of employee consultations and the closing of the real estate sale," Starwood said--Le Meridien's management team will continue to operate independently.
"The signing of the definitive agreements is another step towards completing the consensual recapitalization of Le Meridian," Le Meridien CEO Robert Riley said in a statement. "When all the pieces of the transaction come together, the Le Meridian brand, our hotels and our people will be poised to move forward aggressively with one of the world's most dynamic global hospitality companies. Until then we can assure our owners, partners and guests that it is business as usual at Le Meridian"
Starwood in April announced the creation of a joint venture with Lehman Brothers to acquire Le Meridien
(BTNonline, April 28), and the two parties are moving to take on the Le Meridien brand and "all related management and franchise business." The partnership wasn't the first for the two companies. Amid Le Meridien's mounting financial woes, Starwood and Lehman Brothers in late 2003 jointly acquired a majority of hotel brand's senior-level debt
(BTNonline, Jan. 5, 2004).
The deal would give Starwood corporate clients with chainwide deals more property choices but one less competitor in the upper upscale category with which to negotiate.