Compass Waits For Good Price For Meridien

LONDON Britain s Compass Group may struggle to sell its Meridien luxury hotels for over two billion pounds, or $2.86 billion, as the threat of a global slowdown puts hotel prices under pressure, said analysts. It seems that Marriott and Nomura, frontrunners in the auction, are rethinking their bids in light of U.S. economic slowdown fears. However, many analysts said they still think Meridien will fetch $2.86 billion. Some say that the fall in hotel valuations may intensify the battle between Marriott and Nomura, and may even bring Bass and Accor back into the auction. A price of two billion pounds, or $2.86 billion, for the Meridien hotel chain would bring Compass close to its target of 3.5 billion pounds for the group s overall hotel auction. (4/6/01)