LE MÉRIDIEN ACQUIRES NEW HOTEL IN CHICAGO

Le Méridien Hotels & Resorts has announced that it has exchanged contracts to acquire a new 17 story, 311-bedroom hotel currently under construction in Chicago, USA. The hotel is scheduled to open in Spring 2001.

The five-star property, located in the North Bridge District, in the heart of Chicago on Michigan Avenue, is being acquired from 125 River North Hotel Venture, which includes local developer, The John Buck Company and Morgan Stanley Real Estate Funds. 125 River North Hotel Venture will retain a minority interest in the hotel after completion.

The move continues Le Méridien’s strategy to strengthen its presence in the USA, gaining long-term security in key gateway cities. It is the second owned property for Le Méridien in the United States, the first being Le Méridien at Beverly Hills in Los Angeles in 1999. It brings a total of eight Le Méridien hotels and resorts to North America.

Facilities will include 11,000sq. ft. of flexible multi-purpose meeting space located over two floors as well as a spa and fitness center. Outlets will include an 88-cover restaurant, a bar and an outdoor terrace.

The hotel will be fitted to high specifications with standard room size of 418 sq. ft. The rooms (278 bedrooms and 33 suites) will feature the latest technology, including additional line for high-speed internet access.

Comments Bernard Lambert, Managing Director, Le Méridien Hotels & Resorts: "We are delighted to have secured such a prime property in Chicago in partnership with the company that has built this development for the future.

"Chicago is not only the third largest city in the United States, but it is also the top city for business, one of the major cities for conventions and conferences – and it has a growing domestic and international tourism industry. It is a key gateway for our brand development and the hotel has the location and facilities to appeal to all these sectors.

"Le Méridien Chicago will make an extremely positive contribution to our growth in the United States – not only in terms of business but also in brand awareness."


JOHN A. BUCK, The Chairman of The John Buck Company stated, "We are very fortunate to have a partner with the operating experience, market strength and financial strength of Le Méridien. The Le Méridien Hotel will provide an excellent compliment to our North Bridge District, filling the need for a five-star luxury hospitality product."


NOTES:


Le Méridien Hotels & Resorts is a division of Forte Hotel Group, the UK’s largest hotel operator and third largest operator in Europe.

Forte Hotel Group operates some 440 hotels and resorts with a total of 59,000 bedrooms across 55 countries worldwide. The Group consists of 4 clearly differentiated hotel brands – 125 international, luxury Le Méridien; 44 traditional Heritage Hotels; 79 mid-market Posthouse and 195 budget Travelodge in the UK. Also part of the Group is one of the UK’s leading health club operators and No.1 contract operator in the UK, Granada Health & Fitness.

Le Méridien will have more than 125 hotels and resorts operating in 55 countries by the end of 2000. The brand combines European style with individual character and flair – ‘La Difference’, each hotel respecting the local culture. Le Méridien hotels and resorts is committed to delivering quality service and products and guests can be sure of the highest levels of personal service, exciting cuisine and an extensive range of business, conference, banqueting, health and leisure facilities. This year, a strategic alliance has been formed between Le Méridien and Nikko Hotels International.

In 2002, Le Méridien plans to open another hotel in the USA – San Diego (368-rooms). This will be operated by management contract.