Starwood Hotels has signed an agreement to buy the Le Meridien brand and all its related management and franchise business.
Under a separate agreement, Lehman Brothers and Starwood Capital Group are forming a joint venture to take all the Le Meridien group's owned and leased properties. This excludes Forte Village in Sardinia and the Le Méridien hotels in Los Angeles and Chicago which will be sold to Lehman Brothers or their designee.
The deals, which cover more than 130 hotels and resorts in 56 countries, are likely to be completed by the late autumn.
Le Meridien will continue to operate as an independent company under its current management until the sale has been completed. A spokesman said there was “no suggestion” the brand name would disappear but he expected the new owners to invest in it.
Robert riley, ceo of Le Meridien, said: “The signing of the definitive agreement is another step towards completing the consensual recapitalisation of Le Meridien.
“When all the pieces of the transaction come together, the Le Meridien brand, our hotels and our people will be poised to move forward aggressively with one of the world's most dynamic global hospitality companies.”
The deal confirms Starwood as one of the world's biggest hotel chains with, prior to the acquisition of Le Meridien, 750 properties in 80 countries.
Its brands include St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, and W Hotels and Resorts as well as Starwood Vacation Ownership.