Le Meridien resumes presence in SAR while looking further north

Luxury hotel group Le Meridien Hotels and Resorts has earmarked US$550 million for global expansion by 2004, with Hong Kong and China its major targets.

The London-based group resumed its presence in Hong Kong after it was awarded a 10-year contract by the Information Technology and Broadcasting Bureau to manage the 176-room high-tech hotel within Cyber-Port at Pokfulam.

It is the group's first expansion into Hong Kong since its two management hotel contracts were taken back under the wing of the owner, the Regal Hotel group, in 1994.

Michael Sagild, managing director Asia Pacific, said the global expansion plan would need about US$1.3 billion, of which US$550 million would be invested by the group and the rest by its partners.

The group has a portfolio of 144 luxury hotels with 38,631 rooms in 57 countries.

Mr Sagild said there had been a significant change in its philosophy towards expansion after the group went through an ownership change last year.

In July last year, Nomura International acquired Meridien Hotels from the Compass Group for GBP1.9 billion (about HK$20.93 billion). At the same time Meridien Hotels was merged with Principal Hotels, acquired by Nomura International in February last year.