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GlobeSt.com UPDATE: All Things Le Meridien Change Hands

GREENWICH, CT-The sale includes 32 properties, the brand, the management portfolio and the franchise business. Affiliates of locally based Starwood Capital Group Global LLC and Lehman Bros., buy the properties with plans to retrade some soon. Publicly held Starwood Hotels and Resorts Worldwide acquires everything else.

By Brian K. Miller | Updated on November 27, 2005

GREENWICH, CT-All things Le Meridien have changed hands. The London-based company’s 32-property portfolio was sold to a 50-50 joint venture of an affiliate of locally based Starwood Capital Group Global LLC and an affiliate of Lehman Bros. Le Meridien’s brand, management portfolio and franchise business, which covers 132 properties, was sold to publicly held Starwood Hotels and Resorts Worldwide Inc. Starwood Hotels and Resorts says the purchase price for its piece was $225 million, which is close to the amount of Le Meridien debt it holds (including accrued interest). Starwood Capital Group’s cost to acquire Le Meridien’s operating properties was not released by the privately held company and not otherwise immediately available.GlobeSt.com first reported a deal was in the works 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.

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