Le Meridien to manage new properties worth $600m

Le Meridien, which is undergoing a corporate restructuring following the Lehman Brothers' buying of its £1.2 billion debt portfolio, will be managing nine new properties worth $600 million in the Gulf that are currently in various phases of development, according to a senior official.

Le Meridien's Middle East and West Asia region, which covers 26 territories, currently manages 32 properties out of its global portfolio of 135 hotels and serviced apartments. The nine new properties with 2,869 rooms, when completed by 2006, will increase its portfolio to 144 properties.

The chain manages 33,000 rooms in 135 properties in 56 territories. Last year, Le Meridien opened 15 new hotels and announced the development of a further 15.

The chain recently open-ed Le Meridien Fairway in Garhoud. The Dh400 million Grosvenor House is under construction at Dubai Marina, which will increase the number of Le Meridien properties in the UAE to 13. Ashok Ummat, Le Meridien's senior vice-president, finance and development for the Middle East and West Asia region, said the chain's regional operation contributes about 18 per cent to its annual global sales revenue of $1.5 billion.

"Currently, the Middle East and West Asia is one of the fastest growing regions. We have signed up with developers to construct nine new properties in the region, valued at $600 million," he said.

"These include a $200 million 1,320-room Le Meridien Makkah Towers, which is being built by Al Majad Holdings. Construction of the property, which began six months ago, will be completed by June, 2005. It will have eight towers. This follows the recent opening of the 231-room Le Meridien Makkah, also developed by Al Majad Holdings.

"We have also signed up for a 275-room Le Meridien Riyadh, scheduled to open in June, 2005.

"In Kuwait, we are developing three new properties, including the 70-room Le Meridien Kuwait which will be opened this month. This is followed by another 70-room property, Le Meridien Mubarakiya Kuwait, and the 80-room Le Meridien Salmiya Kuwait – both to be completed by early 2006." Construction work for the chain's Grosvenor House Hotel and Apartments at Dubai Marina is in full swing. It is expected to be opened in the first quarter of next year.

Ummat said his company is aggressively looking into the South Asian markets.

"India, Pakistan, Bangladesh and Nepal are some of the next growth countries and we are looking for opportunities there," he said. "Currently under development is the 280-room Le Meridien Karachi, which will be ready for opening by the third quarter of the current year. We are also going to open the 102-room Le Meridien Kathmandu Gokarna Forest Golf Resort and Spa in December this year.

"We have recently signed a memorandum of understanding with an Indian developer to convert the Hyderabad Nizam's Palace into a 250-room Le Meridien Hyderabad hotel, which will be opened during the third quarter of 2006.

"There are a number of properties we are currently negotiating with developers in the 26 territories in the Middle East and West Asia region, including India and Bangladesh.

"This also shows the developers' confidence in our brand name, which recently underwent some crises that we have managed to overcome. Our corporate restructuring will be completed by June this year, by when the £1.2 billion debt woes for Le Meridien will be over following the buying of our debt portfolio by Lehman Brothers."