Starwood Hotels & Resorts last week completed its acquisition of Le Meridien, completing a deal initiated this spring to take on the brand's franchising rights as well as the management of more than 130 hotels and resorts, mostly outside of the United States. The $225 million deal expands Starwood's presence in Europe, the Middle East and Asia, while further shifting Starwood's business model from one based on real estate ownership to one driven by management and franchise fees.
The culmination of the Le Meridien deal comes on the heels of another transaction solidifying Starwood's new business direction. Earlier this month, the company sold 38 luxury and upper upscale hotels to Host Marriott, while maintaining management rights
(BTNonline, Nov. 14).
Starwood in April inked a pact to acquire Le Meridien
(BTNonline, April 28) and now the White Plains, N.Y.-based hotel giant adds to its management portfolio 43 properties in Europe, 47 properties in Africa and the Middle East, 28 properties in Asia/Pacific and India and 12 in the Americas.
"Le Meridien hotels are located in many markets where we don't already have a strong presence," said Starwood CEO Steven Heyer in a statement. "This, coupled with the brand's excellent reputation and its strong European DNA, is what made it such an attractive proposition for us. In addition, we have great plans to expand the brand—particularly in the United States, Latin America and Asia/Pacific—to enhance the brand itself, and build on its great reputation and people."