NEW YORK HOTEL BUSINESS. has learned Juergen Bartels, former CEO of Starwood Hotels & Resorts hotel group, has been named chief executive of Le Meridien Hotels, which was acquired Friday, May 25 for $2.7 billion, or #1.9B, from Compass Group plc by Nomura International s Principal Finance Group.
Le Meridien s portfolio of more than 100 properties, including hotels in the United States, will be merged with 17 Principal Hotels, which Bartels had been heading since its acquisition by Nomura s PFG in the first quarter of the year.
Guy Hands, managing director of Nomura s PFG, will serve as non-executive chairman of Le Meridien Hotels.
According to Nomura, the merged group will be refinanced with a combination of debt and equity, the bulk emanating from Nomura s PFG ($322.8 million or #227million) and Royal Bank Private Equity ($142.2 million or #100 million), a branch of The Royal Bank of Scotland.
The Royal Bank of Scotland purchased 12 properties from Le Meridien for approximately ($1.77 billion or #1.25 billion), including a capital expenditure facility of $355.5 million, or #250 million, in a sale/leaseback agreement.
Bartels is reportedly bringing $14.2 million, or #10 million, in equity to the deal as well. (5/29/01) Stefani C. O Connor