Following three years of financial uncertainty, Le Méridien Hotels & Resorts will become the seventh brand for White Plains, N.Y.-based Starwood Hotels & Resorts Worldwide. The acquisition proposal was announced in April by Lehman Brothers, holder of much of London-based Le Méridien’s debt. The deal is subject to approval by the board of Le Méridien and is expected to be be completed by the third quarter of 2005. While Starwood would not disclose any financial details of the deal, chief financial officer Vasant Prabhu acknowledged the chain would be reimbursed the $200 million it invested in Le Méridien in January 2004, part of a $1.3 billion bailout Starwood undertook in conjunction with Lehman Brothers to bring control to the struggling overseas group of properties. Analysts say Le Méridien, with a significant presence in Europe and the Middle East, will give Starwood added clout on the international luxury front. “Starwood has luxury representation in the United States with its St. Regis brand, but not overseas,” noted John Fox, senior vice president of New York City-based PKF Consulting. “Le Méridien will provide Starwood with a luxury opening oversees without having to start from scratch.” Indeed, Le Méridien currently has more than 130 hotels in 56 countries. The chain opened 10 properties in 2004 and has 21 more in the pipeline for 2005, including several in Egypt and India. Starwood will bring to its acquisition not only a new injection of capital, but renewed development focus and management stability. “Alignment with a robust multibranded management company like Starwood will enable Le Méridien to thrive by enhancing revenue and accelerating growth,” said Le Méridien CEO Robert Riley upon announcement of the deal.