Starwood officials state that the company will fund $200 million through a high yield junior participation in the debt. Lehman Brothers will own the remaining senior debt of approximately $1.1 billion. As part of the funding agreement, Starwood and Lehman Brothers have entered into an exclusive agreement with Le Meridien's debt holders, including Merrill Lynch, CIBC and a number of other major financial institutions, to negotiate the recapitalization of the Le Meridien firm in the coming months.

The Le Meridien portfolio includes more than 120 upscale hotels and resorts, including facilities in major European cities and resort destinations. Starwood officials add that the Le Meridien portfolio and customer base are largely complementary to Starwood's own stable of properties in the US and overseas. The locally based hotelier owns more than 740 properties in over 80 countries.

Le Meridien has a host of properties in France, including the Le Meridien Etoile and Le Meridien Montparnasse in Paris and in the United Kingdom where it has an ownership interest in more than 10 London hotels. The company also operates a number of US hotels including facilities in Boston, Chicago, Las Vegas, Los Angeles and Minneapolis.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.