Bloomberg News Service
LONDON — Bulgari SpA, the Italian company known for its jewelry, and U.S. hotel operator Marriott International Inc. said they will invest about $140 million to develop a luxury hotel chain.
Bulgari Hotels & Resorts, a joint venture with the largest U.S. hotel company’s luxury unit, is considering possible hotel and resort sites in London, Rome, Paris, New York, Miami and Southern California.
The companies will invest about $70 million each in equity and debt over seven years, Marriott said.
Marriott will manage the hotels through its luxury division, which also runs its Ritz-Carlton hotel chain.
The hotels will feature Italian design, furnishings and food. The first two hotels will open in 2003, the companies said.
"We bring to it the hotel expertise, and they bring to it the expertise of designing their brand," said Arne Sorenson, Marriott’s chief financial officer.
The Italian company said it would provide 65 percent of the equity in the venture and Marriott 35 percent. Marriott will provide 65 percent of the loans and Bulgari the rest.
Bethesda, Md.-based Marriott said the new hotels would appeal to a different level of customer than its namesake hotels and other chains such as Fairfield Inn.
Like its Ritz-Carlton chain, the Bulgari hotels won’t be marketed through the Marriott Rewards loyalty program.
[back to top] |
