Starwood Hotels & Resorts Worldwide has agreed to buy the Le Meridien brand and all related management and franchise business for its 130 hotels and resorts.
Separately, affiliates of Lehman Brothers and Starwood Capital Group Global are forming a joint venture, which is expected to acquire the Le Meridien’s owned and leased hotels.
A Le Méridien statement said the chain will continue to operate as an independent company under the current management team until the completion of these transactions, which is expected in early autumn.
Le Méridien chief executive Robert Riley said: “The signing of the definitive agreements is another step towards completing the consensual recapitalisation of Le Méridien.
“When all the pieces of the transaction come together, the Le Méridien 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 Méridien.”
Report by Phil Davies
