in April

The properties will be managed under their current flags by Starwood Hotels. Starwood Capital says it and Lehman plan to retrade several of the hotels in the near future. They will be sold unencumbered by brand affiliation, according to Starwood Capital.

The owned and leased Le Meridien portfolio consists of four- and five-star hotels totaling about 8,000 hotel rooms and located in 16 countries. The hotels are located primarily in Europe but also in North America, Africa, and South America. Signature properties include the Hotel Eden in Rome; the Le Meridien Dona Filipa and Le Meridien Penina Golf & Resort properties in the Algarve, Portugal; and the 1,025-key Le Meridien Etoile in Paris.

The transaction was consummated after nearly two years of negotiations. Starwood Capital chief executive Barry Sternlicht says the transaction widens Starwood Hotels and Resorts' footprint in Europe, Africa, Middle East and Asia Pacific. It also furthers the company's shift from its significant real estate ownership to a management and franchise fee focused model, which was highlighted earlier this month when it agreed to sell 18,964 rooms in 38 properties to Host Marriott Corp. for approximately $4 billion in stock and cash, or about $210,00 per key.