Le Méridien brand and hotels being sold

Le Méridien Hotels and Resorts has signed definitive agreements with Starwood Hotels and Resorts Worldwide, Inc. to sell the Le Meridien brand and all related management and franchise business for the brand's 130 hotels and resorts.

Separately, affiliates of Lehman Brothers and Starwood Capital Group Global LLC are forming a joint venture, which is expected to acquire the group's owned and leased hotel portfolio.

Closing of the brand purchase transaction is subject to certain significant terms and conditions including completion of employee consultations and the closing of the real estate sale. Le Méridien 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 Meridien Phoenicia in Malta is a fully-owned hotel within the group.

London-based Le Méridien is a global group with a portfolio of more than 130 luxury and upscale hotels in 56 countries.

In the 2005 Luxury Brand Status Index survey, Le Méridien was recognised as one of the top 15 luxury hotel brands in the world and will complement Starwood's top brands of St Regis and W hotels.

Other Starwood hotel brands include Sheraton, Westin and Four Points by Sheraton.