News Archive : Japan Real Estate

Friday, November 25, 2005

Starwood Capital Group Acquires Le Meridien Hotels & Resorts Portfolio

Starwood Capital Group Acquires Le Meridien Hotels & Resorts Portfolio
24.11.2005 14:27:00

GREENWICH, Conn., Nov. 24 /PRNewswire/ -- Starwood Capital Group Global, L.L.C. ("Starwood Capital"), a closely held real estate investment firm based in Greenwich, Connecticut, today announced that its controlled affiliate, in a 50/50 joint venture with an affiliate of Lehman Brothers ("Lehman"), has acquired the owned and leased hotel portfolio of Le Meridien Hotels and Resorts ("Le Meridien"). Within the same transaction, Starwood Hotels & Resorts ("Starwood Hotels") has acquired the Le Meridien brand, management and franchise business from Le Meridien. Starwood Hotels has also entered into management agreements for the owned and leased Le Meridien properties to be acquired by Starwood Capital and Lehman with such hotels continuing to be operated under their current flags. Starwood Capital and Lehman anticipate selling several agreed upon hotels unencumbered by brand affiliation in the near future.

The owned and leased portfolio is made up of 32 luxury, four/five star hotels located primarily across Europe but also in North America, Africa, and South America. With properties in business, leisure, and resort markets, it includes such assets as the Hotel Eden in Rome, Italy, 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, France. Overall, the portfolio consists of over 8,000 hotel rooms in 16 countries. Barry Sternlicht, Chairman and CEO of Starwood Capital, said, "This acquisition will allow us to capitalize on an ongoing recovery in the European full-service lodging sector as many of the assets in this portfolio are located in strategic European markets. I also believe this transaction is an excellent strategic fit for Starwood Hotels and that Starwood Hotels' operational expertise could improve the performance of these assets on behalf of the real estate owners. It is rewarding to see this transaction consummated after almost two years of complex negotiations."