Connect with us

Phuket

Meridien chain close to new ownership

Published

 on 

Meridien chain close to new ownership | Thaiger

PHUKET: Plans are on the table for recapitalization of debt-ridden Le Meridien Hotels & Resorts, which operates four hotels in Southern Thailand.

Two of the hotels, Le Meridien Phuket Beach Resort and Le Meridien Khao Lak, are to reopen later this year after being severely damaged by the catastrophic events of December 26.

Le Royal Meridien Phuket Yacht Club at Nai Harn Beach suffered minimal damage and remained open while Le Meridien Baan Taling Ngam on Koh Samui was, consequently, busier than expected.

In a recent press release, Meridien headquarters in London announced that affiliates of investment bank Lehman Brothers, which holds much of Le Meridien’s debts, and Starwood Capital Group Global LLC intend to form a joint venture to acquire Meridien’s portfolio of 135 leased and owned hotels.

In addition, Starwood Hotels & Resorts Worldwide Inc (Starwood Hotels), which operates more than 750 properties worldwide, – both owned and managed – including the Sheraton Grande Laguna Phuket, has entered into a non-binding agreement to acquire and subsequently manage the Le Meridien chain from Lehman Brothers/Starwood Capital.

Realization of these these proposals still awaits a decision by the Meridien board, and through parallel discussions with – among others – stakeholders and employee representatives of the chain. If the deal goes through, the transactions and recapitalization are set to be completed in the third quarter of 2005.

Speaking to the Gazette today, Philippe Seigle, Regional General Manager of Le Meridien Thailand Resorts, said, “For the statement on the proposed recapitalization and acquisition to have been released, I would say that it is very likely that it will go ahead.”

Asked what changes this could mean for the four local resorts and whether the proposals – if accepted – could mean the end of the Meridien brand, he said, “On the contrary, Le Meridien will stay under the Le Meridien flag; it is, after all, a high-profile, well-respected and unique brand.

“Jobs will not be affected and the management teams will stay in place.”

When asked if any of Le Meridien hotels worldwide might be incorporated into the current range of Starwood Hotels brands, Mr Siegle said that it is anticipated that although the Meridien brand will remain, the management company will review its portfolio at a later date.

“In many ways the proposal is more like an MOU [memorandum of understanding], the ‘will’ to go for an agreement, and [the parties involved] are still finalizing the details.

“The agreement is ‘non-binding’ because no-one knows exactly what will happen in the future.”

He also said that Le Meridien Phuket Beach Resort and Le Meridien Khao Lak were on track to reopen in August and mid-October respectively.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Central Thailand6 mins ago

Shooting after comedy show in central Thailand, 1 seriously injured

Thailand45 mins ago

UPDATE: Woman who allegedly abused a soldier is a police officer

Kanchanaburi55 mins ago

Police shoot and kill major drug trafficker in Kanchanaburi

Tourism1 hour ago

Thailand’s CCSA talk tourist stats, visas on arrival & home isolation

Thailand1 hour ago

RTN’s ocean conservation activity accused of spoiling ecosystem

Chon Buri2 hours ago

Ferocious cobra bites rescuer’s girlfriend in Chon Buri

Join the conversation on the Thaiger Talk forums today!
Thailand2 hours ago

Angry tourists demand refunds from tour operators in Thailand

Thailand3 hours ago

Motorbike taxi driver saves teenager from suicide in eastern Thailand

South4 hours ago

UPDATE: BRN insurgents admits to Deep South bombings

Crime4 hours ago

Alleged kidnapper arrested, girl reunited with parents after months

Cannabis4 hours ago

New govt bill on cannabis hopes to clear blurred lines in Thailand

Crime4 hours ago

Famous Thai actress “Pinky” jailed for Forex-3D scam, denied bail

Chon Buri5 hours ago

Father tragically drowns while fishing in Chon Buri pond

Crime5 hours ago

South African’s life sentence reduced to 33 years for drug trafficking in Thailand

Thailand6 hours ago

PM’s office is one of Thailand’s top advertising spenders

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending