So far they have identified and are negotiating over threeor four specific sites, according to Roger Conner, Marriott's vicepresident of communications. Cities targeted include London, Rome,Paris, New York, Miami as well as Southern California and island resortdestinations. The new facilities could be either ground-up constructionsor conversions of existing buildings, says Conner.

Marriott International, based here, also operates the luxuryRitz-Carlton Hotel chain. Both of the new Bulgari Hotels & Resorts andRitz-Carlton will be managed through a new luxury group based inAtlanta. While the sluggish economy is expected to slow the hospitality business,Conner says the luxury segment remains strong.

"There is a bit of a niche segment in which there is growing demand forhigh-style luxury hotels," notes Conner, who explained tht the hotels,which will feature between 200 to 300 rooms, will differ from the moretraditional Ritz-Carlton brand by offering Bulgari'sstreamlined Italian style.

The board of the new joint venture company consists of an equal mix ofsenior Bulgari and Marriott representatives. It will review eachproject on an individual basis.

J.W. Marriott, Jr., chairman and CEO of Marriott International, indicates the partnering with Bulgari would benefit Marriott in its strategic planning. He also suggests this may bring more investors to the company.

Although the level of investment will depend on the details of specificprojects, Bulgari and Marriott have agreed to equally capitalize thejoint venture with up to $140 million in equity and subordinated loansover seven years. It is anticipated that the companies will lease thereal estate from local partners.